Nike (NKE) is known to just about every sports fan on the planet, and now one of the biggest faces on the NFL brand.
Last year, Nike inked an exclusive five-year deal with the NFL for $1.1 billion to provide uniforms for all 32 NFL teams. Initial estimates on a potential sales boost ran to about $500 million per year, or about 2% of its $25 billion in annual sales.
Nike’s North American apparel business alone clocked in at $3 billion last year, growing 22% between fiscal 2013 and 2012, and the company noted its licensing agreement as one of the growth drivers.
Still, while the NFL is big for exposure, it’s still just one part of the Nike franchise, which includes gear and accessories for virtually every sport out there on a very global scale.
Meanwhile, Nike’s stock is up 25% year-to-date and split 2-for-1 last year. NKE’s dividend isn’t anything to scream about — it yields just 1.3% — but the company has increased its quarterly payout for 11 consecutive years.
Nike is established, and with its feet firmly planted in the technology necessary to advance sporting apparel, it should be just fine for the long haul.
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing he does not hold a position in any of the aforementioned securities.