By Noel Randewich
Nov 25 (Reuters) – As the 32 teams battle it out for the World Cup in Qatar, Adidas and Nike are also hoping their actions can take advantage of the excitement the competition is generating among fans.
The world’s highest-profile soccer tournament, with FIFA projections of at least 5 billion viewers, is a great opportunity for sportswear makers who market their jerseys, boots and other merchandise featuring teams and individual players.
Adidas shares lost 6% during the month of the 2018 World Cup, when Germany, one of its teams, was eliminated early and the tournament was won by France, a Nike team. Nike gained 4% in the same period, outpacing the S&P 500’s 1% advance.
In its quarterly conference call on November 9, Adidas said it expects sales of about 400 million euros ($415 million) related to the World Cup, which would amount to about 2% of additional annual revenue.
Nike did not immediately respond to a request for comment on the importance of the World Cup to its sales.
Although soccer-related items account for a fraction of Adidas and Nike’s global businesses, the hype around the World Cup and team jerseys can provide a sales-boosting effect on other types of items, Tom said. Nikic, a Wedbush analyst.
“If someone in Germany buys a World Cup jersey, will they also buy a new pair of sneakers? Or if an Adidas-sponsored team wins it all, in the euphoria of winning the World Cup, will people buy more jerseys from the What would I have bought differently? That’s where you can see some variability,” Nikic said.
Nike supplies jerseys to 13 teams in the tournament this year, including Brazil, France and the United States, beating Adidas’s seven, including soccer powerhouses Germany, Spain and Argentina. Six countries play with Puma, while New Balance and other firms complete the rest. (Edited in Spanish by Carlos Serrano)