Nike stock down after sneaker explodes on basketball player
Nike stock tumbles after a shoe splits and injures a star college basketball player.
Nike stock has fallen by as much as 2% after a sneaker exploded and injured a star US college basketball player. The incident has been a public relations problem for the shoe company.
How did a Nike sneaker injure an athlete?
Nike has a contract with the US college Duke University for the athletes to wear their shoes. During a basketball game, forward and National Basketball Association (NBA) top prospect, Zion Williamson, was wearing the PG 2.5 sneakers when he slipped on the floor and his shoe split in half. Williamson then twisted his knee, fell, and missed the rest of the game. While the knee injury wasn’t as serious as feared, investors sold the stock after reports of the incident spread across social media. Nike expressed regret for the shoe malfunction in a statement and wished Williamson a quick recovery.
‘We are obviously concerned and want to wish Zion a speedy recovery. The quality and performance of our products are of utmost importance. While this is an isolated occurrence, we are working to identify the issue,’ said Nike in a statement.
Was it Zion Williamson’s fault the Nike shoe broke?
While critics of Nike said the quality of the sneaker was poor, Brad Crawford, a US sports reporter, believes that Williamson may have worn out the shoes because of his strength.
‘From in-game photos, Williamson's pair of the player edition PG 2.5 in Duke's familiar white and blue colorway appear to be worn quite a bit, hence more give than usual in the midsole where separation occurred in a violent manner,’ noted Crawford.
‘If you look at Williamson's severed left sneaker, the upper is fully intact, meaning the notion of 'bad craftsmanship' is a misnomer. The phylon midsole is destroyed as a result of weakened foam. That's not going to happen for most players, but with a worn shoe, it's not all that surprising considering Williamson's size and strength,’ wrote Crawford.
Whether it was the shoe or Williamson himself who caused the injury, Nike has to act quickly to reassure investors that their sneakers will help, not hurt, customers in their fitness goals.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
