DURHAM, NORTH CAROLINA - FEBRUARY 20: Zion Williamson #1 of the Duke Blue Devils reacts after falling as his shoe breaks against Luke Maye #32 of the North Carolina Tar Heels during their game at Cameron Indoor Stadium on February 20, 2019 in Durham, North Carolina. (Photo by Streeter Lecka/Getty Images)
DURHAM, NORTH CAROLINA - FEBRUARY 20: Zion Williamson #1 of the Duke Blue Devils reacts after falling as his shoe breaks against Luke Maye #32 of the North Carolina Tar Heels during their game at Cameron Indoor Stadium on February 20, 2019 in Durham, North Carolina. (Photo by Streeter Lecka/Getty Images)
PHOTO: Streeter Lecka/Getty Images North America/Getty Images
Now playing
01:24
Nike takes a hit after Duke star's shoe 'imploded'
PHOTO: Orangetheory Fitness
Now playing
02:13
This gym is actually opening studios during the pandemic
Now playing
02:24
How holiday spirit is surging despite the Covid-19 pandemic
NEW YORK, NEW YORK - NOVEMBER 19: A view of the window display as Macy
NEW YORK, NEW YORK - NOVEMBER 19: A view of the window display as Macy's Herald Square unveils Give, Love, Believe 2020 Holiday Windows on November 19, 2020 in New York City. (Photo by Eugene Gologursky/Getty Images for Macy's)
PHOTO: Eugene Gologursky/Getty Images North America/Getty Images for Macy's
Now playing
00:56
Macy's unveils holiday window display with gratitude theme
PHOTO: CNN/Target/Design by John General
Now playing
02:36
It's official: Black Friday is irrelevant
Now playing
02:23
Party City CEO: Consumers still want to celebrate together
NEW YORK, UNITED STATES - 2020/07/08: People wearing face masks shopping inside a retail store in Manhattan as the city enters phase 3 of reopening amid the coronavirus pandemic
As New York City enters phase 3 of reopening retail stores for indoor shopping, restaurants have been postponed for indoor dinning. The U.S. Department of Health recorded a total of 3,219,999 infections, 135,822 death and 1,426,428 recovered since the beginning of the outbreak. (Photo by Braulio Jatar/SOPA Images/LightRocket via Getty Images)
NEW YORK, UNITED STATES - 2020/07/08: People wearing face masks shopping inside a retail store in Manhattan as the city enters phase 3 of reopening amid the coronavirus pandemic As New York City enters phase 3 of reopening retail stores for indoor shopping, restaurants have been postponed for indoor dinning. The U.S. Department of Health recorded a total of 3,219,999 infections, 135,822 death and 1,426,428 recovered since the beginning of the outbreak. (Photo by Braulio Jatar/SOPA Images/LightRocket via Getty Images)
PHOTO: Braulio Jatar/SOPA Images/LightRocket/Getty Images
Now playing
01:38
US retail sales improved in September
PHOTO: thehouseofdrew.com
Now playing
02:01
Justin Bieber's footwear collaboration overwhelms site
PHOTO: Walmart
Now playing
01:01
See what's new inside Walmart stores
WHEATON, MARYLAND - APRIL 16: Customers wear face masks to prevent the spread of the novel coronavirus as they line up to enter a Costco Wholesale store April 16, 2020 in Wheaton, Maryland. Maryland Governor Larry Hogan ordered that all people must wear some kind of face mask to protect themselves and others from COVID-19 when on public transportation, grocery stores, retail establishments and other places where social distancing is not always possible. (Photo by Chip Somodevilla/Getty Images)
WHEATON, MARYLAND - APRIL 16: Customers wear face masks to prevent the spread of the novel coronavirus as they line up to enter a Costco Wholesale store April 16, 2020 in Wheaton, Maryland. Maryland Governor Larry Hogan ordered that all people must wear some kind of face mask to protect themselves and others from COVID-19 when on public transportation, grocery stores, retail establishments and other places where social distancing is not always possible. (Photo by Chip Somodevilla/Getty Images)
PHOTO: Chip Somodevilla/Getty Images
Now playing
02:32
How masks are reshaping the face of the retail economy
3119 E Third Street Dollar General in Dayton, OH on March 12, 2020.
3119 E Third Street Dollar General in Dayton, OH on March 12, 2020.
PHOTO: Maddie McGarvey for CNN
Now playing
06:07
Dollar General's business is booming. It's also vulnerable to crime, police say
Now playing
03:01
How private equity is gutting retail
Now playing
01:55
All retail bankruptcies are not the same. Here's what you need to know
Now playing
02:44
Is T.J.Maxx recession-proof?
LOS ANGELES, CA - APRIL 10:  Customers carry bags from  Bed Bath & Beyond store on April 10, 2013 in Los Angeles, California. The home goods retailer is expected to release fourth-quarter earnings figures after the closing bell.  (Photo by Kevork Djansezian/Getty Images)
LOS ANGELES, CA - APRIL 10: Customers carry bags from Bed Bath & Beyond store on April 10, 2013 in Los Angeles, California. The home goods retailer is expected to release fourth-quarter earnings figures after the closing bell. (Photo by Kevork Djansezian/Getty Images)
PHOTO: Kevork Djansezian/Getty Images
Now playing
00:58
Why Bed Bath & Beyond is in big trouble
A Kohl
A Kohl's Corp. store stands in Concord, California, U.S., on Tuesday, Feb. 24, 2015. Kohl's Corp. is expected to release earnings figures on Feb. 26. Photographer: David Paul Morris/Bloomberg via Getty Images
PHOTO: David Paul Morris/Bloomberg via Getty Images
Now playing
01:25
Kohl's needs to reinvent itself. Are Aldi and Amazon the key?
(CNN Business) —  

Nike is playing damage control after Duke basketball phenom Zion Williamson tore his sneaker in a game Wednesday evening.

Nike’s (NKE) stock was down more than 1% on Thursday. Nike builds its reputation around creating premier shoes and clothes for athletes, but that image took a hit with Williamson’s sneaker snafu.

Analysts attributed the stock move to Williamson, the presumptive top pick in this year’s NBA draft and the hottest prospect since LeBron James entered the draft from high school more than a decade ago. Within the first minute of Duke’s blockbuster matchup against rival North Carolina on Wednesday, one of Williamson’s Nike PG2.5 shoes split apart.

Williamson left the game with a knee injury. Former President Barack Obama was sitting courtside, and clips of Williamson breaking his shoe and Obama pointing to it immediately went viral.

Nike, which exclusively supplies Duke’s basketball team with uniforms, shoes and gear, quickly released a statement.

“The quality and performance of our products are of utmost importance,” the company said. “While this is an isolated occurrence, we are working to identify the issue.”

Endorsement deals with star athletes, including LeBron James and Serena Williams, and sponsorships with pro sports leagues and top college basketball and football teams are a crucial part of Nike’s growth strategy.

Nike spent $11.5 billion, nearly a third of its sales, on marketing and endorsement contracts last year. Nike and its Jordan brand sponsored 85 men’s and women’s basketball teams in last year’s annual NCAA tournament.

In its annual securities filing, Nike warned that “negative claims or publicity involving us” from key endorsers or sponsors can “seriously damage our reputation and brand image.” It added another risk: “Social media, which accelerates and potentially amplifies the scope of negative publicity, can increase the challenges of responding to negative claims.”

Still, analysts don’t predict the Williamson incident to damage Nike’s reputation in the long run. Nike’s products haven’t had any major malfunctions in the past, except for some NBA jerseys briefly ripping in 2017.

“This is embarrassing for Nike, but will have no material impact on the business,” said Matt Powell, analyst at NPD Group.

Nike has also reduced its dependence on high-top basketball sneakers for growth in recent years. It has instead focused on lightweight running and wear-to-work shoes.

Nike’s basketball sneaker sales fell last year as consumers move away from performance sneakers to more casual and comfortable shoes. “Basketball shoes are not in fashion,” Powell said. “Athleisure footwear is in style.”

Patrick Rishe, the sports business director at Washington University in St. Louis, called Williamson’s sneaker break a freak accident.

“Nike is a massive brand and has tremendous power,” he said. “If they’re smart, they’ll reach out to Zion and have him wear their shoes again.”

CNN’s Alison Kosik contributed to this story.