There is a lot of weird financial data in/around Nike that is coming to a head. For those who track issues closely, Nike is using the COVID-19 issues to hide the Kaepernick effect.
Everyone remembers Nike went all-in on their social justice model and made a corporate decision to make Black Lives Matter activist Colin Kaepernick the image of their brand.
In their latest financial results Nike is reporting a net quarterly loss of $790 million…. That’s a big deal. However, given the defensive excuses over the COVID-19 shutdown, that loss alone isn’t the big story. Their year-over-year sales are down 38%, which tells us the downward spiral has been happening for a lot longer than a quarter.
How bad were their results? To give you some perspective most financial analysts in the industry were looking for a profit target around seven cents per share. The result Nike reported was a loss of 51 cents per share. That is a massive disparity.
In my opinion, having tracked MAGA and Anti-MAGA companies and effects, what Nike was doing in much of last year was hiding and deferring income losses due to sales declines. They did this because the larger goal was to hide the impact of their branding shift. Nike didn’t want people to know how much backlash they faced, so they used every mechanism possible including inventory manipulation to avoid showing losses.






