The stock price of Nike Inc (NKE) has fallen by over 1.22% today till the late morning trading session. The stock closed at $51.52 on Friday.
The Oregon based company is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and sales of footwear, apparel, equipment, accessories and services. It is one of the world’s largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. In 2014 the brand alone was valued at $19 billion, making it the most valuable brand among sports businesses.
The Black Friday frenzy affected Nike as well. A Nike store has been wrecked after an estimated 20,000 shoppers tore through the shop in search of Black Friday bargains. The store, in the town on Tulalip in Washington state, was pictured with shoes, boxes and packaging strewn over the shop floor as customers picked through the carnage. Store employees had previously posted a picture on Instagram of products neatly arranged in preparation for the Black Friday rush.
But customers later posted their own images showing the aftermath of the fight for discounts. One shopper, Larry Downer, said he had visited the store to buy a pair of basketball trainers for his young son, but was greeted with a scene of complete chaos. He told sources, “I thought there was an earthquake that happened. It was unreal.” He added, “We start walking through from aisle to aisle, and you’re walking over orange boxes everywhere.
Another shopper said “People were just kicking stuff out of the way. Seeing little kids kicking things to the side with disregard – that kind of bothered me. As parents were swimming through it, the kids had the same reaction.”
One shop worker estimated 20,000 people had visited the store between 8pm last Thursday and 10.00pm on Friday. The employee, who did not want to be named, said: “People were not putting anything back in the right place at all the whole time we were open.” The scene was “Jurassic Park crazy”, he added.
Black Friday traditionally takes place the day after the US festival of Thanksgiving and sees many stores open early and offer promotional sales to mark the start of the Christmas shopping season. The day has frequently been marred by violence between shoppers competing for bargains and by injuries caused by stampedes when stores open.
There have been reports of several shootings occurring outside US shops on Black Friday this year. In New Jersey, a 21-year-old was shot dead outside a Macy’s store, while another man was shot and injured at a shopping mall in Memphis.
Our analysts have given a “HOLD” rating to Nike’s stock. It is still not much of a suitable period to invest in this stock as of now. However, the current holders of this stock are advised not to sell it yet.