Controversial Ad Campaign Takes Nike (NYSE:NKE) to New Highs

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At just under $95 a share, Nike Inc (NYSE:NKE) is trading near all-time highs. Shares are up 56% in the last year. This comes as Nike Inc (NYSE:NKE) rolled out its new advertising campaign featuring former NFL player Colin Kaepernick. There was an initial pushback from shoppers or owners, but the ad appears to have done more good than harm. 

The campaign isn't hurting Nike Inc (NYSE:NKE). The controversial campaign has generated buzz, with Nike Inc (NYSE:NKE) taking a stand, and making a bet, on what is important for its customers. Nike Inc (NYSE:NKE) knows what it's doing on the marketing campaigns.

Nike (NYSE:NKE) Sales Rise Despite Ad

Sales of Nike Inc (NYSE:NKE) products grew nicely over the Labor Day weekend, possibly, in part, thanks to the ad. From Sunday to Tuesday over Labor Day, the day the ad was released, Nike Inc (NYSE:NKE) sales were up 31% from 2017. That also tops the 17% year-over-year sales increase last year during the same period. For the entire week, sales were higher year-over-year.

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Capitalizing On the Kaepernick Buzz

Nike Inc (NYSE:NKE) will be looking to parlay the buzz around the Kaepernick ad into other areas and partnerships it�s recently formed. This includes a deal with the soccer club, Paris Saint-Germain. Another move to expand its reach and grow the international business.

It's building buzz with the Saint-Germain and Jordan brand with celebrities, including Justin Timberlake and Travis Scott. The move looks to expand the Jordan brand, which generates 8% of Nike Inc (NYSE:NKE) sales beyond basketball in America. Nothing represents global sports better than soccer. Jordan looks to expand into London and Berlin as well, then set its sights on China.

Nike Inc (NYSE:NKE) also recently teamed with Walmart (NYSE:WMT)'s Jet.com to sell products on the site. The move looks to tap Nike's urban, affluent customer bases, starting in New York City. Nike Inc (NYSE:NKE) also started a pilot program with Amazon.com, Inc. (NASDAQ:AMZN) last year that includes selling some merchandise on the e-commerce site.

Even at 35 times earnings, you can't count Nike Inc (NYSE:NKE) as an expensive stock. It consistently finds new ways to grow, expand its reach and stay relevant. 


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