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World Cup boosts Nike revenue and profit

Article By: ,  Financial Analyst
September 26, 2014 10:45 AM

Nike has reported a jump in revenue and profit following the Fifa World Cup.

The US sportswear company stated that revenues were up 15 per cent to $8 billion (£4.9 billion) while net profit rose by 23 per cent to $962 million in the three months to August. The strong performance was put down to the company's increased presence during the 2014 World Cup. It had outstripped major rivals such as Adidas and Reebok which have both struggled of late.

Nike invested large sums in marketing during the tournament with footballing superstars Cristiano Ronaldo and Neymar being the focus of its campaign. The company launched an innovative television advert entitled The Last Game. It featured cartoon versions of Ronaldo and Neymar along with the likes of Wayne Rooney, Andres Iniesta, Zlatan Ibrahimovic and David Luiz among others.

The 2014 World Cup in Brazil also represented the first time that Nike sponsored more national teams than rival Adidas, although the two teams competing in the final, Argentina and Germany, were sponsored by the German firm. It was not just the World Cup that boosted Nike's performance as its Converse brand also recorded a 16 per cent revenue rise to $575 million.

Trevor Edwards, Nike's brand president, said on a conference call: "There is tremendous energy around the brand in Europe with innovative products that are resonating with consumers. We saw strong results from both performance footwear and apparel as well as in sportswear.

"As of the end of the quarter, we had the leading footwear market share in the nine largest football markets around the world."

In the UK, Nike recently decided against renewing its sponsorship deal with Manchester United. The US company is ending its 13-year association with the former Premier League champions at the end of the 2014/15 season. Adidas has taken up the contract in what is the largest deal of its kind in sporting history.

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