Nike share rose 2% after Colin Kaepernick advised the company to pull the offensive ‘Air Max 1 USA’ shoes off its shelf. The shoe’s ‘Betsey Ross Flag’ design was connected to the era of slavery. After eliminating the shoe, Nike added nearly 3 billion dollars in market value.
Nike’s intentions were good as the ‘Air Max1 USA’ was created in celebration of July 4th holiday for 140 dollars, however the design was ill advised. Colin Kaepernick noted early American flag with a circle of 13 stars was offensive due to its alleged association with extremist organization, reports Wall Street Journal.
Colin Kaepernick has brought a lot of fortune to the sports goods company. After he was featured in a much-talked about Nike commercial, the company received more than 43 million worth of media exposure from the ad, according to the information provided by Apex Marketing Groups.
Nike’s progressive social image has been helpful to boost its sales among millennial demographic. The company reported 38% African Americans between the ages of 18 and 34 and 41% of those aged 35 or older said they expect the brand they buy to support social causes.
Analyzing Nike’s performance, the company boosted revenues by 4% to just over 10 billion dollars. But missed analyst estimates for earnings. However, the maker of Air Force 1 sneakers missed analyst estimates for earnings in its fiscal Q4. North America sales were up 8% to 4.17 billion dollars in the region which accounts for nearly 40% of the company’s revenue.