By Danielle Kaye
NEW YORK, July 16 (Reuters) – Nike’s swoosh will be notably absent from the World Cup final.
Argentina’s semi-final win over England on Wednesday crushed the sportswear giant’s hopes of sponsoring a team on the tournament’s biggest stage on Sunday.
Amid a fierce brand battle on and off the pitch, the outcome represents an assured visibility boost for rival Adidas, which outfits both finalists: Argentina and Spain.
Adidas had sponsored a total of 14 national teams in the tournament. None of Nike’s 12 teams, including semi-finalists England and France, managed to secure a spot in the final match.
Both companies have invested heavily in the soccer tournament, but Nike has been relying on it for sales and visibility as it tries to right its ship amid years of steadily shrinking market share.
Even a World Cup lift was unlikely to shift Nike’s trajectory. The sportswear company last month signaled that CEO Elliott Hill’s turnaround strategy faced significant obstacles, as persistent weakness in China and a cautious outlook overshadowed a modest fourth-quarter revenue beat.
The company’s shares have lost nearly a third of their value this year as investors grow impatient with Hill’s progress.
“There are more important issues, such as footwear innovation, inventory control, and stabilizing sales and margins in China,” said Morningstar analyst David Swartz. “Adidas got more publicity, but that’s just the way it goes.”
A Nike spokesperson said the company always wants its athletes and federation partners to go as far as possible, but that “our vision for football has never been tied to a single moment.”
Adidas called the World Cup final a “proud moment” for the company, while declining to share sales projections.
OUTSIZED BOOST FOR ADIDAS
On top of its national team sponsorships, Nike unveiled two new Mercurial soccer boots ahead of the World Cup, partnered with local street-wear designers and refreshed soccer merchandise at more than 5,000 Nike and wholesale stores globally.
Its “Rip the Script” World Cup campaign, built around a film featuring soccer icons and celebrities from France striker Kylian Mbappe to reality TV star Kim Kardashian, garnered 1.5 billion views during the first week of the tournament, Nike said. By kick-off, its national team kits had sold 2.5 times more than the same period during the Qatar World Cup in 2022.
But Adidas, an official World Cup sponsor, is a “clear winner” in the athletic footwear and apparel market, said Drake MacFarlane, a research analyst at M Science.
Stronger momentum in the U.S. and Europe helped the brand gain share from Nike in the second quarter, he said. World Cup demand has offered a lift, but Adidas’ improvement extends beyond the event while Nike continues to face pressure in Europe.
Adidas’ share of the footwear market rose to 19.2% in June, up from 16.0% a year earlier, while Nike continued to shed share, according to M Science data.
In April, Adidas executives said the company took around 250 million euros ($292 million) in bookings for World Cup products in the first quarter and expected the same in the current quarter.
(Reporting by Danielle Kaye; Editing by Ken Ferris)
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