By Marlene Lenthang
Posted September 28th 2018
Colin Kaepernick’s controversial Nike ad has added a whopping $6billion to Nike’s value.
Nike cashed in on its political advertisement with Kaepernick at the forefront -recording a five per cent increase following their Labor Day announcement unveiling the former 49ers quarterback as the face of its 30th anniversary campaign.
The athletics company has also seen its shares surge 36 per cent over the year, making it the Dow’s best performing stock, according to CBS.
Colin Kaepernick’s ad has added $6billion to Nike’s market value in three weeks after it was announced on September 3
Nike has seen a 36 per cent surge in its shares over the past year, with a five per cent boost following Kaepernick’s ad. His ad for Nike’s 30th anniversary pictured above in San Francisco
Since the ad release on September 3, Nike’s shares at first dipped then sky rocketed five per cent, amounting to $6billion in added value. On Monday, Nike shares were at $84.48. A market summary of Nike’s shares over the past month is pictured above
Kaepernick became a polarizing figure in the sports world after he took a knee during the national anthem in 2016 to protest racial inequality and police brutality.
His kneeling stint abruptly halted his six-year career at the San Francisco 49ers and he’s remained unsigned since.
When Nike unveiled its anniversary campaign – a close up of Kaepernick’s face with the message ‘Believe in something, even if it means sacrificing everything’ – it sparked controversy anew online.
Some angry Nike shoppers announced a boycott, cutting up their socks, burning their shoes, and sharing their outrage on social media. Even President Donald Trump deemed the ad ‘a terrible message’.
And at first, the sportswear company felt the hit suffering a three per cent dip, amounting to a $4billion loss.
Nike has cashed in on the controversy of Kaepernick, who became a polarizing figure in the sports world after he took a knee during the national anthem in 2016
Despite the critics, Nike maintained that it supported Kaepernick.
‘We believe Colin is one of the most inspirational athletes of this generation, who has leveraged the power of sport to help move the world forward,’ said Gino Fisanotti, a Nike vice president of brand for North America, according to ESPN.
Following the backlash came the rally of Kaepernick supporters who stood with athlete and his message and showed support by heading to Nike stores.
The brand’s stock hit an all-time high in mid-September closing at $83.49 with products selling out more frequently than ever.
Nike sold out 61 per cent more merchandise following the Kaepernick ad, according to Reuters, notably selling out far more items between September 3 and 13 than in the 10-day period before the campaign.
On Friday, September 21 Nike closed at another all time high at $85.55 and on Monday shares were at $84.48.