FIFA anticipates at least 5 billion TV viewers during the 2022 World Cup, presenting a significant opportunity for sports gear manufacturers to promote their products through the teams and individual players. Brands like Adidas and Nike hope their shares will thrive as the 32 teams participate in the world-renowned soccer event.
During the 2018 World Cup, Adidas stock fell 6% after France, a Nike team, won the FIFA competition while the much favored Adidas team, Germany, got an early elimination. Nike’s stocks increased by 4% during the same period, outpacing the S&P 500’s 1% growth.
The impact of the world cup on Nike and Adidas sales
In its quarterly conference call on Nov. 9, Adidas projected its World Cup-related sales at roughly $415 million, which is about 2% more than its annual revenue.
According to an Adidas spokeswoman, Mexico jerseys are currently among their top sellers. Nike did not respond immediately regarding the impact of the World Cup on its sales.
While sales of soccer-related goods only make up a small portion of Adidas and Nike’s overall businesses, Tom Nikic of Wedbush Research noted that the excitement surrounding the World Cup and team jerseys could have a ripple effect that boosts sales of other goods.
“Does someone in Germany who buys a World Cup jersey also purchase new shoes? Or if a team sponsored by Adidas wins the World Cup, do fans buy more jerseys than they otherwise would have in the joy of their victory? That’s where you would notice some difference “said Nikic.
Nike and Adidas 2022 World cup jerseys brand distribution
In this World Cup, 13 teams, including Brazil, France, and the United States, are wearing jerseys made by Nike. That has surpassed Adidas as the market leader in this kind of apparel. Adidas is the official uniform provider for seven teams, including world champions Germany, Spain, and Argentina.
Nike-clad teams vs. Adidas-clad teams in the 2022 world cup
After Almost a week of action in the World Cup, teams wearing Nike jerseys have accrued 22 points, followed by teams wearing Adidas jerseys with 11. Puma-clad teams come third with 11 points.
Nike’s shares have increased by less than 1% throughout the competition. Adidas and Puma, on the other hand, have each had declines of 3.8% and 3.0%, respectively.
Betting odds are in favor of Brazil, which sports Nike clothing, as the most likely country to win the 2022 World Cup.