A billboard featuring former San Francisco 49ers quaterback Colin Kaepernick is displayed on the roof of the Nike Store on September 5, 2018 in San Francisco, California.

Nike shares recouped their losses on Monday after last selling off in the wake of a controversial advertising campaign that featured former San Francisco 49ers quarterback Colin Kaepernick.

The campaign, revealed last Tuesday to celebrate the 30th anniversary of Nike's slogan "Just Do it,'' sparked immediate strong responses both in support and protest. Kaepernick has been a polarizing figure in the sports universe ever since he decided not to stand for the national anthem during a 2016 NFL preseason football game to protest racial injustice.

Despite the 3 percent hit Nike took to its stock, its online sales jumped after announcing the campaign. Between Sunday and Wednesday of Labor Day weekend, product orders rose 27 percent, according to Edison Trends, a digital-commerce researcher. In the same period last year, product orders fell 2 percent.

While industry analysts say the move by Nike is risky, others say risky moves are necessary to stay relevant and stay ahead.

Nike said the campaign will also include other athletes such as Serena Williams, LeBron James, Lacey Baker, Shaquem Griffin and Odell Beckham Jr.

Nike is set to report quarterly earnings later this month. Its shares have climbed about 31 percent so far this year.

— CNBC's Lauren Thomas and Sarah Whitten contributed to this report.

