sports
Adidas Outfits Both World Cup Finalists as Argentina Reaches Sunday’s Match Against Spain
Argentina defeated England in the semi-final, setting up a final between two teams sponsored by Adidas. Nike sponsored none of the finalists despite investing in marketing for the tournament.
Jul 16, 11:26 AM·1m read1 source
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Argentina defeated England in the World Cup semi-final on Wednesday, leaving Adidas to outfit both teams in Sunday's final against Spain. The Independent reported that Adidas sponsored 14 national teams in the tournament while Nike sponsored 12, none of which reached the final. Adidas is an official World Cup sponsor.
The outcome gives the company added visibility at a time when it has gained ground in the athletic footwear market. M Science data showed Adidas's share of the U.S. footwear market rising to 19.2 percent in June from 16.0 percent a year earlier, while Nike continued to lose share.
Nike has faced broader pressure. Its shares have lost nearly a third of their value this year. The company signaled last month that CEO Elliott Hill's turnaround strategy faces significant obstacles, including weakness in China, even after a modest fourth-quarter revenue beat.
Morningstar analyst David Swartz said deeper issues remain for Nike beyond the tournament result. "There are more important issues, such as footwear innovation, inventory control, and stabilizing sales and margins in China," he stated. He added that Adidas received more publicity from the final matchup but that outcome was simply how events unfolded.
Nike maintained a longer-term view. A company spokesperson said the firm's vision for football has never been tied to a single moment. Nike unveiled two new Mercurial soccer boots, partnered with local streetwear designers, refreshed merchandise at more than 5,000 stores, and ran a "Rip the Script" campaign that drew 1.5 billion views in its first week.
National team kits sold 2.5 times more than during the 2022 Qatar World Cup. Adidas executives reported robust bookings for World Cup products of around 250 million euros in the first quarter and anticipate similar figures in the current quarter. Drake MacFarlane of M Science described Adidas as the clear winner in the athletic footwear and apparel market during the period.
