Shares in Nike tumbled early Tuesday amid worries the sport goods giant's new marketing campaign around Colin Kaepernick could harm sales.
Nike fell 2.9% on the Dow Jones to $79.78 in mid-morning trading, the first session following news that former San Francisco 49ers quarterback Kaepernick would be featured in Nike's campaign to mark the 30th anniversary of the "Just Do It" slogan.
Adidas stocks are also down almost 2% today.
Kaepernick, who triggered a political firestorm after kneeling during the US national anthem in 2016 to protest racial injustice, has not played in the NFL since early last year.
Brave or foolhardy? @EvanneNiC speaks to Wilson Hartnell's Head of Sport Sarah O'Connor on Nike's decision to use Colin Kapernick to front a new advertising campaign pic.twitter.com/qjgQpPNrE5
— RTÉ Sport (@RTEsport) September 4, 2018
The 30-year-old has filed a grievance accusing NFL teams of colluding to keep him out of the league and this week the the NFL's request to dismiss the case was rejected.
Kaepernick's cause was taken up by other NFL players last season, who launched protests that have been repeatedly slammed by US President Donald Trump.
Nike's move prompted immediate calls for boycotts from some consumers.
"While it is noble to take a stand on something, it is also commercially imprudent to dash headlong into a very sensitive issue which polarises opinion," said Neil Saunders, managing director of GlobalData Retail.
"Although the company's stand may go down well on its native West Coast, it will be far less welcome in many other locations."
But other analysts said the ads could boost Nike's standing with core consumers, including minorities and millennials.
There has been a backlash from American conservatives online, with videos ad photos of Nike products being burned and destroyed popping up under the hashtag #Justburnit - a play on the Just Do It slogan.
Our Soundman just cut the Nike swoosh off his socks. Former marine. Get ready @Nike multiply that by the millions. pic.twitter.com/h8kj6RXe7j
— John Rich (@johnrich) September 3, 2018
There was, of course, widespread support also for the company and Kaepernick, not least from fellow Nike athlete Serena Williams.
Especially proud to be a part of the Nike family today. #justdoit pic.twitter.com/GAZtkAIwbk
— Serena Williams (@serenawilliams) September 4, 2018
