For competing apparel brands Nike and Adidas, the World Cup is a golden opportunity, but one that finds the rivals in very different positions.
While Nike’s leadership attempts to turn the ship around, its old rival Adidas sees an opportunity to close the gap internationally, and grow its business in the U.S. CEO Bjørn Gulden told investors in March, during its fourth-quarter earnings call, that Adidas aimed to double the size of its American business – and gun for the No. 1 spot everywhere else. The company enjoyed improving margins and revenues rose 14% during that quarter.
“All responsible people should have the ambition of being No. 1,” Gulden said. “It is important now that we keep the leadership where we have it, and in addition to that, [that we] specifically target the American consumer.”
For Nike, the World Cup is a major moment in a sporting summer among several — marathon and tennis season are also important for its footholds in those sports, noted eMarketer analyst Sky Manaves. For Adidas, it’s an opportunity to own soccer and ride the rising popularity of the sport in the U.S. to commercial success. “Nike has a much broader presence across sports,” said Manaves. “For Adidas, the World Cup is a lot more significant for its brand and its sales.”
