Nike's Favorability Drops Double Digits Following New ‘Just Do It’ Campaign

Evidently, "do it" was interpreted as "sell your stock".

Among Americans.
How many Nike fans are in Europe, Asia, Africa, Oceana, and South America again?

So their ratings are equal to Trump's now.....interesting.

Bud Plug said:

Evidently, "do it" was interpreted as "sell your stock".

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Except Nike dropped the first day and then has made small gains in a down market for the past two days. So you could interpret that as IF Trump supporters sold their Nike holdings - their investments must be pretty meagre as there has been absolutely no follow up selling after the first day's drop. You guys don't seem to realize that the US market is of declining importance to the Nike brand. Still large - but the company has projected a decline in US share of their overall revenue - and this was long before the Kaepernick campaign was launched. Their growth engine will be China, Europe and Latin America - all areas where Trump ain't exactly as loved as he is where fat guys burn their Nikes.

essguy_ said:

Except Nike dropped the first day and then has made small gains in a down market for the past two days. So you could interpret that as IF Trump supporters sold their Nike holdings - their investments must be pretty meagre as there has been absolutely no follow up selling after the first day's drop. You guys don't seem to realize that the US market is of declining importance to the Nike brand. Still large - but the company has projected a decline in US share of their overall revenue - and this was long before the Kaepernick campaign was launched. Their growth engine will be China, Europe and Latin America - all areas where Trump ain't exactly as loved as he is where fat guys burn their Nikes.

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Be that as it may, what rational company WANTS to take a 3% hit to its market cap? This was an unforced error. I'm sure the Chinese won't be buying more sneakers because some mediocre American football player that they've never heard of took a stand against American police brutality.

Bud Plug said:

Be that as it may, what rational company WANTS to take a 3% hit to its market cap? This was an unforced error. I'm sure the Chinese won't be buying more sneakers because some mediocre American football player that they've never heard of took a stand against American police brutality.

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You're looking at it backwards. Chinese, European, or Latin American would be Nike purchasers are NOT going to change their minds because a bunch of Trump supporters burned their Nike's. And that's where Nike is growing.
Further, Nike did not get to where they are by worrying about short term knee-jerk emotional responses to one of their campaigns. The Kaepernick campaign is just starting and you have no idea whether it will be successful or not based upon the launch. Even in the U.S., many Americans will recognize the importance of taking a stance. I have no idea where their marketing campaign will go, but it's not hard to imagine Nike flipping this around so that Kaepernick's actions are viewed (eg: 6 months from now) as truly "American" and about Freedom. There is a LOT going on here outside of Nike, don't forget.

Bud Plug said:

Be that as it may, what rational company WANTS to take a 3% hit to its market cap? This was an unforced error. I'm sure the Chinese won't be buying more sneakers because some mediocre American football player that they've never heard of took a stand against American police brutality.

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Well then, I'm sure that the Chinese WILL be buying more sneakers because an American activist took a stand against a lame duck, childish, amoral POTUS.

Third day now NKE flat to slightly up in a down to mixed market. What's the matter? Did Trump fans run out of their 10 share positions to sell?

essguy_ said:

Third day now NKE flat to slightly up in a down to mixed market. What's the matter? Did Trump fans run out of their 10 share positions to sell?

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Fantastic! Maybe in a few more days, or weeks, they will be back to where they started? Of course, all the money spent on the ad campaign and/or on recovering the stock position is still down the toilet.

I was always led to believe that the purpose of advertising was to increase sales and/or stock prices. You seem to be viewing advertising as a success if somehow a company can recover from its negative effects.

Bud Plug said:

Fantastic! Maybe in a few more days, or weeks, they will be back to where they started? Of course, all the money spent on the ad campaign and/or on recovering the stock position is still down the toilet.

I was always led to believe that the purpose of advertising was to increase sales and/or stock prices. You seem to be viewing advertising as a success if somehow a company can recover from its negative effects.

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You don't measure sales or stock performance on the basis of one day's drop, Plug. That is the point. Nor do you call a marketing campaign a success or failure based upon launch day protests. All the crowing from penny stock/odd lot Trump fans about the 3% stock drop in response to the marketing campaign launch was way overblown. Meanwhile, the stock market overall has dropped 4 days straight so NKE is not that far off the market for this week and still outperforming the overall market on the year. Is Trump a failure because the market has dropped 4 days mostly on trade uncertainty?

You should probably not comment on marketing or markets - it's pretty clear that you lack experience in both areas.

essguy_ said:

You don't measure sales or stock performance on the basis of one day's drop, Plug. That is the point. Nor do you call a marketing campaign a success or failure based upon launch day protests. All the crowing from penny stock/odd lot Trump fans about the 3% stock drop in response to the marketing campaign launch was way overblown. Meanwhile, the stock market overall has dropped 4 days straight so NKE is not that far off the market for this week and still outperforming the overall market on the year. Is Trump a failure because the market has dropped 4 days mostly on trade uncertainty?

You should probably not comment on marketing or markets - it's pretty clear that you lack experience in both areas.

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I'm not sure that anyone needs a degree in marketing or to be a registered stock broker to know that marketing that is guaranteed to disaffect part of of your existing clientele/shareholders, but which can't be counted upon to offset those losses by adding new customers/shareholders, is a bad idea. Or do they teach otherwise?

Bud Plug said:

I'm not sure that anyone needs a degree in marketing or to be a registered stock broker to know that marketing that is guaranteed to disaffect part of of your existing clientele/shareholders, but which can't be counted upon to offset those losses by adding new customers/shareholders, is a bad idea. Or do they teach otherwise?

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In your opinion.
What about the people who hate Trump who will intentionally make sure they buy Nike the next time they are shopping for a shirt or a new pair of shoes?
Unlike you, Nike is probably a bit more in tuned to the long game.

apoptygma said:

Unlike you, Nike is probably a bit more in tuned to the long game.

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So were RIM and Nortel, until they were wrong.

Seems an odd choice to move from "Just Do It" (positive) to "Resist" (negative), but maybe the world is crazier than I perceive it to be. And I am also assuming that consumers/shareholders in the rest of the world don't give a hoot, one way or the other, about American activism causes, so I also assume most of that market cap loss resulted from American stockholders selling.

Bud Plug said:

So were RIM and Nortel, until they were wrong.

Seems an odd choice to move from "Just Do It" (positive) to "Resist" (negative), but maybe the world is crazier than I perceive it to be. And I am also assuming that consumers/shareholders in the rest of the world don't give a hoot, one way or the other, about American activism causes, so I also assume most of that market cap loss resulted from American stockholders selling.

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First of all, your comparison to Rim and Nortel is just bizarre. Both of those companies got into trouble because of a lack of innovation (combined with accounting scandals at Nortel). Furthermore - YOU view the message as negative. I would submit that Nike is less concerned with your views and more concerned with the younger demographic who continue to see the "Just Do It" message as positive - even more so with Kapaernick. Kapaernick has done nothing wrong, nothing illegal. In fact, the positive spin here is that he lives in a country where his type of protest is allowed. That is actually a cause for celebration and the spin out of Trump and the Whitehouse is actually the negative message and on the wrong side of history. I suspect that Nike will try to flip the narrative along those lines over the life of this campaign. This is called the long-game. Nike dropped 3% in one day but in a year where they have outperformed the market and grown revenue in the double digits. (Furthermore, as the market continued to drop, NKE performed better). IF this campaign is successful, Nike will emerge an even stronger brand down the road - respected by both it's remaining, and future customers as well as the high profile athletes they will continue to attract to the brand.

Bud Plug said:

So were RIM and Nortel, until they were wrong.

Seems an odd choice to move from "Just Do It" (positive) to "Resist" (negative), but maybe the world is crazier than I perceive it to be. And I am also assuming that consumers/shareholders in the rest of the world don't give a hoot, one way or the other, about American activism causes, so I also assume most of that market cap loss resulted from American stockholders selling.

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So once or twice someone was viewed as wrong... so let's abandon their methodology into perpetuity.
Also, what essguy_ said.
Also... you're so myopic it isn't even funny.

I suppose you ONLY invest in shares that are only GUARANTEED to increase day over day, perpetually... correct?
Your Trump-butt-love is laughable.