empty
25.11.2022 04:40 PM
Trading under pressure: Nike shares are rising

Analysts anticipate that the World Cup, held this year in Qatar, will result in increased revenue for Nike and Adidas.

Trading under pressure: Nike shares are rising

This image is no longer relevant

On November 9, representatives of Adidas stated that they anticipated World Cup-related sales of about 400 million euros ($415 million), or about 2% of additional annual revenue.

This scenario is likely because FIFA draws at least 5 billion viewers yearly. The biggest football event in the world is a significant opportunity for sportswear companies to sell their t-shirts, boots, and other merchandise alongside teams and individual players. Even though Adidas and Nike only sell a small portion of their football-related products, the excitement surrounding the World Cup and team t-shirts can have a ripple effect that boosts sales of unrelated products.

Of course, expectations from manufacturers sometimes pan out.

For instance, in 2018, during the month-long FIFA World Cup, shares of Adidas fell by 6%. The fact that France, the Nike team, won the FIFA tournament and the German Adidas team, which has a significant advantage, was eliminated early is likely due to this. These people were not forgotten: Nike increased 4% over the same period, outpacing the S&P 500's growth by 1%.

Brazil, France, and the United States are just a few of the 13 teams wearing Nike jerseys this year as they compete for the Cup. Only seven teams are sporting Adidas T-shirts, so the company has overtaken its rival in that category. Six more nations wear Puma T-shirts, while items from New Balance and other brands represent other nations.

Top managers don't look away from the scoreboard with the results, while football fans watch the ball fly on the field.

In the first four days of the World Cup, teams wearing Nike gear scored 15 points, while teams wearing Adidas gear scored 11 points.

The quotes were not slowed down enough to be affected. Nike shares increased by more than 1% during the competition, while Adidas and Puma shares decreased by more than 3%. Nike teams from Brazil and France, most likely to win the 2022 Cup, are currently favored in bookmakers' wagers.

Adidas will be included, though. Regardless of the brand, interest in sports games typically results in higher industry sales. And while Puma and Adidas are currently grazing the rear of the pack, their sales at the end of the month will still show a healthy surplus compared to November of last year, which bodes well for the upcoming quarterly report and stock growth.

As a result, using situational information guides can help you complete several stock market transactions successfully.

Egor Danilov,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Stock market on June 12: SP500 and NASDAQ slightly drop

At the close of the last regular trading session, US stock indices ended lower. The S&P 500 fell by 0.27%, while the Nasdaq 100 dropped 0.50%. The Dow Jones Industrial

Jakub Novak 12:00 2025-06-12 UTC+2

Financial plateau or springboard? What is behind the market's pause in growth?

The US market is holding its ground but no longer advancing. It has reached its projected peak yet has not found fresh energy for the next leg up. The week

Anna Zotova 14:09 2025-06-11 UTC+2

Update on US stock market on June 11

S&P500 Snapshot of major US stock indexes on Tuesday: Dow +0.3%, NASDAQ +0.6%, S&P 500 +0.6%, S&P 500 at 6,038, range 5,400–6,200. The stock market rose on Tuesday, supported

Jozef Kovach 14:06 2025-06-11 UTC+2

Optimism wearing thin: market to sustain new impulse?

The US stock market continues to maintain its upward momentum, yet the atmosphere is increasingly charged with anticipation. Wednesday's inflation report and corporate earnings from key players are setting

Anna Zotova 12:12 2025-06-11 UTC+2

Stock Market on May 10th: S&P 500 and NASDAQ Resume Growth Amid Negotiation Results

At the close of the previous regular session, U.S. stock indices ended in positive territory. The S&P 500 rose by 0.55%, while the Nasdaq 100 jumped by 0.63%. The industrial

Jakub Novak 10:25 2025-06-11 UTC+2

US market rallies on jobs data

S&P 500 Overview for June 9 US market rallies on nonfarm payrolls data Major US indices on Friday: Dow +1%, NASDAQ +1.2%, S&P 500 +1%, S&P 500: 6,000, trading range

Jozef Kovach 13:51 2025-06-10 UTC+2

Stock Market Overview on May 9: S&P 500 and NASDAQ post sharp gains

US equity benchmarks ended the previous regular session with a pronounced surge. The S&P 500 gained 1.03%, while the Nasdaq 100 jumped 1.20%. The industrial Dow Jones added 1.05%. Asian

Jakub Novak 13:29 2025-06-10 UTC+2

Week before Fed's decision: how indices may react if inflation derails scenario

The US market is showing resilience and growing amid uncertainty. Optimism is fragile, and each new macroeconomic data release is like a roll of the dice. Further growth

Anna Zotova 13:21 2025-06-10 UTC+2

Stock Market as of May 10th: S&P 500 and NASDAQ

At the close of the previous regular session, U.S. stock indices showed strong gains. The S&P 500 rose by 0.09%, and the Nasdaq 100 jumped by 0.31%. The industrial

Jakub Novak 09:50 2025-06-10 UTC+2

S&P 500 Forecast for June 10, 2025

On the weekly chart, the price has broken above the MACD line today, and the week opened above the intermediate level of 5998. The Marlin oscillator is showing a confident

Laurie Bailey 04:46 2025-06-10 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.