On a quarterly earnings call, Nike CEO Mark Parker addressed head on the new ad campaign with former NFL player Colin Kaepernick. Following strong first-quarter earnings and revenue growth, Parker expressed confidence in Nike’s sponsorship agreement, particularly related to social media engagement:
“How we look at it is how do we connect and engage in a way that’s relevant and inspiring to the consumers that we’re here to serve. Our brand strength ... is a key dimension that contributes to the ongoing momentum that we’re building across the Nike portfolio.”
About an ad campaign that also features athletes Serena Williams and Lebron James, Parker said,
“These are actually very inspiring athletes, and again we feel like that campaign has delivered on that message in a way that’s really connected with people around the world.”
But the stock did fall in after-hours trading after the earnings report. Analysts say investors expected more than 10% revenue growth, and they note this is the first quarter since a sexual harassment scandal hit the company.
The company executives tout the campaign results on social media. How much do these results matter compared to the earnings report?
Maybe this is another example of how quarterly reports aren’t the best measure of company performance. Should we be looking longer term? Why or why not?