Market Overview

Moas: Nike's PR Move With Pacquiao Doesn't Make Up For Sweatshops

Share:
Moas: Nike's PR Move With Pacquiao Doesn't Make Up For Sweatshops
Related NKE
Earnings Preview: Under Armour And MGM Resorts Get Ready To Report
With Nike Back On Offense, Sell-Side Sentiment Keeps Under Armour On The Bench
Sawgrass Asset Management Llc Buys Nike, Illinois Tool Works, The Cooper, Sells Dollar Tree, ... (GuruFocus)

Standpoint Research analyst Ronnie Moas had some choice words for Nike Inc (NYSE: NKE) following the company's decision to end its endorsement deal with boxer and Filipino legislator Manny Pacquiao after he said people in same-sex relationships were "worse than animals."

Pacquiao apologized for his comments, but posted an Instagram with the caption "I still stand on my belief that I'm against same sex marriage because of what the Bible says."

Moas couldn't square Nike's seemingly PR-oriented move with its actions, which include a history of sweatshop production, slave wages and child labor practices in Southeast Asian countries.

"So Nike is pro-gay and anti-gay comments are unacceptable to them?" Moas asked in an email to investors Thursday morning. "That is great, but their use of sweatshops is okay? I guess people being abused in sweatshops can't boycott because they have no money to pay $100 for a $5 pair of shoes."

Related Link: Michael Jordan Still Dominates Basketball 13 Years After Retirement

"Nike pays Kevin Durant $300,000,000 and LeBron James $500,000,000," wrote Moas. "The 100,000 workers in Indonesia at the Nike sweatshop get paid $3 a day. Nike's market cap is now $99 billion. They could take 3% of their $3 billion profit and double the salaries of the 100,000 Indonesian workers."

Nike has been criticized over the years for its outsourced labor practices, but has tried to re-shape its image in recent years.

A Nike spokesperson told Benzinga the company had no comment on the matter at time of publishing.

Latest Ratings for NKE

DateFirmActionFromTo
Apr 2017ArgusDowngradesBuyHold
Jan 2017Atlantic EquitiesInitiates Coverage OnOverweight
Jan 2017CLSAInitiates Coverage OnUnderperform

View More Analyst Ratings for NKE
View the Latest Analyst Ratings

Posted-In: Manny Pacquaio Ronnie Moas Standpoint ResearchAnalyst Color News Global Analyst Ratings Best of Benzinga

 

Related Articles (NKE)

View Comments and Join the Discussion!