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Stocks from Nike as well as Adidas could benefit from the World Cup

In the 32 teams competing in at the World Cup in Qatar, Adidas (ADSGn.DE) and Nike (NKE.N) are also hoping they can earn points.

With FIFA expecting at five billion viewers on television The world’s most high-profile soccer tournament is a huge opportunity for apparel companies in sports selling their boots, jerseys, and other items with players and teams.

Adidas shares dropped 6.6% over the course of the year-long World Cup, when heavily preferred Germany as an Adidas team was eliminated early, and it was revealed that the FIFA World Cup ended up being won by France and which is a Nike team. Nike increased 4% over the same time frame and beat that of the benchmark S&P 500’s percent increase.

In the conference call for its quarterly earnings on November. 9 Adidas stated that it anticipates revenues of around 400 euros ($415 million) in connection with the World Cup, which would be around 2% of any additional annual revenues.

Mexico jerseys are one of Adidas the top sellers of the moment the company’s spokesperson said. Adidas spokesperson told the newspaper.

Nike has not yet responded to a request for comments regarding the significance in this World Cup on its sales.

Although soccer-related merchandise makes up only a small portion of Adidas as well as Nike’s general business the hype surrounding this year’s World Cup and team jerseys could have a halo effect that drives sales of other products, according to 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 provides jerseys for 13 teams at the upcoming World Cup, including Brazil, France and the United States and has surpassed Adidas as the top brand in World Cup jerseys. Seven teams are outfitted with Adidas jerseys, including the top contenders Germany, Spain and Argentina.

Six countries will be sporting Puma jerseys and New Balance and other companies comprising the rest.

Just a few days ahead of this World Cup, Nike teams have collected 22 points and Adidas-clad teams have earned 11 points. Teams wearing Puma jerseys have scored eight points.

In the first week of the event the share prices of Nike have gained less than one percent, whereas Adidas and Puma are both down 3.8 percent and 3.0 percent respectively.

The odds on betting favor the Nike-wearing Brazil as the most likely team to win the 2022 World Cup.



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