There is no doubt that Williamson’s shoes exploded in the first second of the competition between rival Duke University and the University of North Carolina, which is a very embarrassing thing for Nike. Nike is actually a synonym for basketball. North Carolina No. 8 beat No. 1 Duke 88-72.
Simeon Siegel, an analyst at Nomura Instinet, said, “It’s clear that Nike’s success is intrinsically linked to the technical performance of its products, which is clearly what they’re going to study, not what should be fired.” “However, at the end of the day, at this point, the fact that it is a pair of shoes deserves to be kept in perspective.”
If Nike can handle this situation properly, many on Wall Street say the incident may have a limited impact on the company’s stock.
Oppenheimer analyst Brian Negel said: “Nike senior management has an ingenious history of action, always protecting and promoting the brand image of the company and its core customers, even in apparently shocked moments.”
Nike shares fell 1% early Thursday. The stock has a market value of $132.1 billion, up 25% from last year and more than 13% since the beginning of this year. By contrast, rival Under Armour has a market capitalization of $9.7 billion, and its share price has risen by 27% in the past year, and by 22% since the beginning of the year.