U.S. Sen. Ted Cruz renewed his criticism of sportswear brand Nike after the company’s shares fell to their lowest level in about 12 years. Cruz revived his previous boycott of the brand after it withdrew a shoe featuring the Betsy Ross flag from its planned 2019 Independence Day release.
“Sad & predictable,” Cruz wrote on X, recalling that Nike’s decision to cancel the shoe was when he stopped supporting the company.
In 2019, Nike withdrew its Betsy Ross-themed sneaker after former NFL quarterback Colin Kaepernick reportedly raised concerns about the design. The shoe featured a Revolutionary-era American flag with 13 white stars arranged in a circle on a blue background. Kaepernick argued that the flag had been adopted by some white nationalist groups and could evoke the era of slavery in the United States.
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Nike said the decision was made because of concerns that the design could “unintentionally offend and detract from the nation’s patriotic holiday.” Cruz responded by saying he would no longer purchase the company’s products. “It’s a good thing @Nike only wants to sell sneakers to people who hate the American flag…. @NFL #HappyFourth,” he wrote on X at the time. Other Republican leaders, including Mitch McConnell, also echoed the criticism.
Nike shares recently slid 4.1% in mid-day trading to reach $39.06, touching a new 52-week low and their lowest intraday level in roughly 12 years. This came as a weak revenue report and cautious guidance from competitor On Holding AG affected the broader athletic footwear sector.
According to media reports, several factors converged to push Nike stock lower. JPMorgan cut its rating on Nike to Underweight from Neutral, with analysts warning that the company’s “Win Now” strategic initiatives risk eroding margins and dragging on earnings ahead.
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Nike also disclosed that Chief Accounting Officer Johanna Nielsen will leave the company on September 4, with CFO David Denton taking on the Corporate Controller role on an interim basis. This leadership change has injected fresh uncertainty into an already difficult period for the brand, according to Investing.com.
Broader equity markets were also under mild pressure, with the S&P 500 losing 0.4% and the Dow Jones Industrial Average giving up 0.5% by the close. Nike finished at the bottom of the Dow’s leaderboard, dragging the index down by 9.75 points on its own, the Wall Street Journal reported.