World Cup Winner: Nike (NKE)
Effects from the World Cup were found all over Nike’s (NKE) most recent earnings, touching everything from revenue to costs. This official sponsor of the World Cup made heavy investments in the tournament — and they sure did pay off.
Revenue grew 11% to $7.43 billion, helped by product launch promotions and investment in World Cup-themed commercials. Both the top and bottom lines beat analysts’ estimates, even after huge cost increases tied to the World Cup. Indeed, selling, general and administrative costs ballooned by more than 20%.
The afterglow of the World Cup will boost Nike in the quarters to come, too. Global orders for future delivery jumped 11% for the period ending in November.
Just remember that Cup effects will inevitably fade — and it only comes once every four years.