Nike Is In Trouble: Latest Earnings Report Reveals Staggering Loss
Sports retailer Nike may be regretting their decision to team up with Colin Kaepernick after their earnings report showed a devastating $790 million loss.
Nike’s latest earnings report is in and it’s devastating news for the sports retail giant. After such a staggering loss, Nike may be regretting their decision to team up with controversial anthem-kneeler Colin Kaepernick. It seems political activism doesn’t pay after all!
Nike Suffers Crushing Loss
Oregon Live reported that Nike reported a staggering loss of $790 million in the quarter ending May 31, which led to a loss of 51 cents per share compared with analyst expectations for nine cents per share in profit.
On top of that, revenues plummeted 38 percent to $6.3 billion amidst the coronavirus pandemic, which has led to a decline in sales all over the globe.
Making matters even worse for Nike is the fact that North America, which is the brand’s biggest operating region, saw revenues plunge 46 percent to $2.2 billion. The only positive for the athletic shoe and apparel retailer was in its online sales, with digital sales increasing 75 percent during the quarter.
Nike Teams Up With Colin Kaepernick
Nike first ran its infamous ad featuring Kaepernick along with the words “believe in something, even if it means sacrificing everything” two years ago.
The brand has continued its partnership with Kaepernick since then. They launched a special shoe for him in December commemorating the day he first took a knee during the national anthem.
— Sneaker News (@SneakerNews) December 16, 2019
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Kaepernick claimed to be taking a knee to protest against racial inequality in America. But many Americans saw it as a clear slap in the face to the American flag and those who have fought and died for it.
Kaepernick himself has made it clear that he has no respect for our flag and our country whatsoever.
“I am not going to stand up to show pride in a flag for a country that oppresses black people and people of color,” Kaepernick said in 2016. “To me, this is bigger than football and it would be selfish on my part to look the other way. There are bodies in the street and people getting paid leave and getting away with murder.”
The New York Times reported that sources at Nike say that the company almost cut ties with Kaepernick before his ad was first released because of the risks he posed for their brand. But Nike decided to move forward with him anyway. We can only imagine that Nike regrets this decision now.
This Loss Can’t Be Surprise
Look at the kind of person that Nike has decided to align itself with. For that reason, the company should not be surprised at all by the losses it has suffered since then.
If Nike wants to get its American customers back, perhaps it should consider doing business with people who actually have respect for our great nation.