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Is Social Media Causing Nike Shares to Drop?

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Public opinion wields power in the world of retail, and with the onslaught of consumers taking to social media to voice their opinions, brands like Nike might be feeling the pain.

In fact, a recent consumer survey noted the influence teens wield over the retail industry. According to a Barron’s report, Wedbush Analyst Christopher Svezia said that Nike is falling short compared to its athleticwear counterparts when it comes to its Instagram presence. 

“We feel Nike is lacking non-sport influencers and is actively ceding mindshare,” Wedbush wrote in a note to clients obtained by Barron’s.

Despite Nike’s move to reach customers with its equality campaign and long list of athlete ambassadors, the brand posts less frequently and supplies less overall content compared to Under Armour and Adidas. And despite its number one spot among teens, the company still posted a 3 percent sales drop in  North American sales last quarter.

Svezia also noted that consumer habits point towards more shoppers buying athletic footwear for leisure purposes, something Svezia notes as a concern due to Nike’s posts focusing more on athletes than leisure.

However, Svezia believes that Nike’s social media flaws are an easy fix. “We… feel this can be done relatively quickly, easily and at limited expense (outside of hiring influencers),” Svezia wrote.

As of Monday morning, Nike shares were down 0.12%.

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