BREAKING NEWS A person has been injured after a car crash and vegetation fire above Stirling City Full Story
BREAKING NEWS PG&E warns nearly 97,000 customers of potential power safety shutoff Full Story
SEVERE WX : Fire Weather Watch View Alerts

Nike shows that its business isn't just Colin Kaepernick

Nike wants investors to know that the strength of its business extends beyond Colin Kaepernick.Nike d...

Posted: Sep 26, 2018 6:49 AM
Updated: Sep 26, 2018 6:49 AM

Nike wants investors to know that the strength of its business extends beyond Colin Kaepernick.

Nike delivered strong results in its most recent quarter, including double-digit growth in sneaker and clothing sales, digital sales and profit compared with the same time last year.

While shares of Nike have climbed about 36% this year, it seemed investors wanted even more from the company. Nike stock was trading down about 4% after hours.

Tuesday's results were promising for a company that struggled last year as rival Adidas gained popularity, and shoppers turned away from Nike's Jordan brand.

There was also good news in North America, the company's largest market. Sales rose 6% last quarter compared with a year earlier.

"In North America, we have returned to strong, sustainable growth," Nike CFO Andy Campion told analysts on a call Tuesday.

The latest quarter did not include September, when the company made Kaepernick a face of its "Just Do It" campaign.

The former San Francisco 49ers quarterback, who has not played in the NFL since the 2016 season, sparked a firestorm when he sat and later knelt during the National Anthem to protest police brutality and racial injustice. President Donald Trump even rebuked Nike after the campaign launched, asking, "What was Nike thinking?" on Twitter.

Nike's decision was a bet on its core customers: Younger Americans in big cities. More people aged 18 to 34 supported the Kaepernick ad than those who opposed it, according to an SSRS Omnibus poll provided exclusively to CNN earlier this month.

Tuesday's results gave another sign that Nike made the call from a position of strength.

Nike didn't bring up Kaepernick during its call with analysts. But CEO Mark Parker was asked whether he was concerned about the controversy.

"We feel actually very good and very proud of the work that we're doing with 'Just Do It,'" Parker said. "We've seen record engagement with the brand as part of the campaign."

Nike, the world's largest sports footwear and athletic company, has reinvented itself for the digital era. Nike wants to sell more shoes and clothes directly to consumers, instead of through retailers. These sales carry higher margins and also give Nike total control over how its products are displayed and marketed.

"Nike is in the early innings of a transition from a traditional wholesaler to a retail tech company," Morgan Stanley analysts said in a report last month.

The company has taken several steps toward its goal, including narrowing its focus to a dozen major cities, cutting out struggling retail partners and relaunching its membership app, NikePlus.

Nike's tactics appear to be working so far. Digital sales jumped 36% last quarter compared with a year earlier.

The company is also getting its flagship products right. Shoes like Nike React, Air Max 270, VaporMax, and ZoomX have landed with customers.

"The success we're seeing today starts with great products. It's ultimately where the consumer cast their vote. Our innovation platforms are building a foundation for growth over many years," Parker said.

California Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 803660

Reported Deaths: 15516
CountyConfirmedDeaths
Los Angeles2657756488
Riverside581781189
San Bernardino53669922
Orange529041204
San Diego46001775
Kern31785361
Fresno28106382
Sacramento22026402
Alameda21028404
Santa Clara20882306
San Joaquin20194441
Stanislaus16452348
Contra Costa16327204
Tulare15897259
Ventura12617147
Imperial11781317
San Francisco1103899
San Mateo9785150
Monterey977270
Santa Barbara9003113
Merced8846140
Kings763177
Sonoma7320120
Marin6672117
Solano630963
Madera448165
Placer354244
San Luis Obispo351029
Butte280343
Yolo278955
Santa Cruz23199
Sutter169611
Napa166113
San Benito133111
Yuba11437
El Dorado10984
Mendocino89918
Shasta77717
Lassen7370
Glenn5743
Tehama5404
Lake53411
Nevada5317
Colusa5276
Humboldt5017
Calaveras31414
Amador29616
Tuolumne2274
Inyo18715
Mono1652
Siskiyou1650
Del Norte1391
Mariposa752
Plumas500
Modoc270
Trinity160
Sierra60
Alpine20
Unassigned00
Chico
Broken Clouds
90° wxIcon
Hi: 90° Lo: 68°
Feels Like: 90°
Oroville
Clear
90° wxIcon
Hi: 90° Lo: 67°
Feels Like: 90°
Paradise
Broken Clouds
90° wxIcon
Hi: 85° Lo: 64°
Feels Like: 90°
Chester
Scattered Clouds
68° wxIcon
Hi: 75° Lo: 48°
Feels Like: 68°
Red Bluff
Clear
89° wxIcon
Hi: 91° Lo: 70°
Feels Like: 89°
Willows
Broken Clouds
90° wxIcon
Hi: 92° Lo: 71°
Feels Like: 90°
Friday was a quiet weather day for northern California, ahead of hotter and potentially more dangerous changes this weekend and early next week. A Red Flag Warning will be in effect from Saturday evening through Monday morning.
KHSL Severe
KHSL Radar
KHSL Temperatures

Community Events