Nike sales defy Colin Kaepernick backlash

The ad campaign featuring one-time NFL player Colin Kaepernick didn’t stop Nike sales growing in the latest quarter.

A Nike ad featuring American football quarterback Colin Kaepernick in New York City Picture: AP

Nike’s sales rose 10 per cent in the latest quarter as the apparel and footwear seller continued to ride strong demand world-wide while weathering backlash for an advertising campaign featuring Colin Kaepernick.

The shoe giant received threats of boycotts through social media after launching the campaign in September featuring the National Football League quarterback-turned-social activist.

Nike ultimately stood by its campaign featuring Kaepernick, a move that also brought supporters of the former NFL player to buy company merchandise. Kaepernick became a controversial figure in the sports and political arenas in 2016 after he started kneeling on the field during the national anthem to call attention to racial injustice and police treatment of people of color.

The company simultaneously played down the significance of Kaepernick’s involvement in its marketing, saying at the time that he is one of many athletes featured in the campaign, which marked the 30th anniversary of its “Just do it” tagline. The ad also features tennis star Serena Williams and one-handed NFL player Shaquem Griffin, among others.

Eli Harold, Colin Kaepernick and Eric Reid of the San Francisco 49ers kneel on the sideline during the US national anthem in 2016. Picture: Getty Images)

Shares of Nike rose about 8 per cent in after-hours trading on Thursday. Nike’s stock has gained about 8 per cent this year.

Revenue in Nike’s North American market, which accounts for the majority of total sales, rose 9 per cent to $US3.78 billion. The gains included an 8 per ecnt increase in the footwear business and a 10 per cent rise in apparel. Equipment sales fell 3 per cent from a year ago.

The sneaker maker’s sales in China rose 26 per cent to $US1.54 billion during the quarter.

Total sales for quarter ended November 30 reached $US9.37 billion, ahead of the $US9.17 billion expected from analysts polled by FactSet.

The company reported a fiscal second-quarter profit of $US847 million, or US52c a share, compared with $US767 million, or US46c cents a share, a year ago. Analysts polled by FactSet were expecting earnings of US46c a share.

Dow Jones Newswires