Is it possible to manufacture outrage as a profit strategy? Yes. Brand imagery is part of the overall business model for any business. Begin with an ideological executive office; consider a manufacturing model dependent on a China/Asia supply chain; add a dose of political calculations into the mix; turn loose the actuaries and a unified CFO and CEO could easily find a way to turn market grievance into profit.
I’m not saying that NIKE is manipulating their market price. However, I am saying if they were to consider their brand scale to enhance financial results, and buying back shares of their own stock to be timed with coordinated media events, you could see a benefit behind the controversy.
It just strikes as too coincidental the latest NIKE “issue” happens at the beginning of a new financial quarter. Nah, probably nothing.
(Via CNBC) Nike is pulling sneakers featuring an early American flag after former NFL football player Colin Kaepernick told the company it shouldn’t sell a shoe that he and others consider offensive, the Wall Street Journal reported Monday evening, citing people familiar with the matter.
Nike shares were falling less than 1% in premarket trading Tuesday following the news. Shares had closed Monday up nearly 2% and have rallied 15% this year, bringing the retailer’s market cap to about $134.2 billion.




