Breaking News
Investing Pro 0
Free Webinar - Crude Oil Trading 2023 | Thursday, February 9, 2023 | 01:00PM PST Enroll Now

Shares of Nike and Adidas could score at the World Cup

Stock Markets Nov 25, 2022 02:05PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The Nike swoosh logo is seen outside the store on 5th Avenue in New York, New York, U.S., March 19, 2019. REUTERS/Carlo Allegri/File Photo
 
US500
-1.11%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ADSGN
+0.60%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NKE
-1.93%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ADDYY
-0.27%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Noel Randewich

(Reuters) -As 32 teams compete for the World Cup in Qatar, Adidas (OTC:ADDYY) and Nike also hope their shares can score.

With FIFA projecting at least 5 billion TV viewers, the world's highest profile soccer event is a major opportunity for sports apparel makers marketing their jerseys, boots and other products with teams and individual players.

Adidas shares lost 6% during the month-long 2018 World Cup, when heavily favored Germany, an Adidas team, was knocked out early and the FIFA tournament was won by France, a Nike team. Nike gained 4% during the same period, beating the S&P 500's 1% gain.

In its quarterly conference call on Nov. 9, Adidas said it expects sales of about 400 euros ($415 million) related to the World Cup, which would amount to around 2% of additional annual revenue.

Mexico jerseys are among Adidas' current best sellers, an Adidas spokesperson said.

Nike did not immediately respond to a request for comment about the importance of the World Cup on its sales.

While soccer-related merchandise accounts for a fraction of both Adidas and Nike's overall businesses, hype around the World Cup and team jerseys can provide a halo effect driving sales of other kinds of merchandise, said Wedbush analyst Tom Nikic.

"If somebody in Germany buys a World Cup jersey, do they also buy a new pair shoes? Or if an Adidas sponsored team wins the whole thing, in the euphoria of winning the World Cup, do people buy more jerseys than they otherwise would have? That's where you can see some variability," Nikic said.

Nike is providing jerseys for 13 teams in this World Cup, including Brazil, France and the United States, overtaking Adidas as the leader in World Cup jerseys. Seven teams are kitted out in Adidas jerseys, including powerhouses Germany, Spain and Argentina.

Six countries are playing in Puma jerseys, with New Balance and other companies making up the remainder.

Nearly a week into the World Cup, Nike teams have accumulated 22 points, while Adidas-clad teams have accumulated 11 points and teams wearing Puma jerseys have won eight points.

So far during the tournament, shares of Nike have risen under 1%, while Adidas and Puma are each down 3.8% and 3.0% respectively.

Betting odds favor Nike-wearing Brazil as most likely to win the 2022 Cup.

Company Session Percent Pct Change

Change During Cup

Nike Inc (NYSE:NKE) -0.5% 0.7%

Adidas AG (ETR:ADSGN) -1.9% -3.8%

Puma SE -1.4% -3.0%

Shares of Nike and Adidas could score at the World Cup
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email