World Cup Winner … and Loser: Adidas (ADDYY)
Nike may own every other sport in the world, but Adidas (ADDYY) owns soccer. The German victory in the world cup only solidified the company’s standing.
Adidas wasn’t just an official sponsor of the World Cup; it was an official supplier. As CEO Herbert Hainer told the press:
“The brand’s presence on the field of play and all around the tournament in Brazil as well as the success of our marketing campaign in social media worldwide is clear proof that Adidas is and will remain the leading football brand.”
Adidas said it will definitely hit its goal of $2.7 billion in sales at its soccer category this year. Soccer ball sales are expected to grow to 14 million from 13 million for the 2010 World Cup. And sales of the German team’s jersey are through the roof.
Too bad ADDYY stunned investors when it cut its growth target for the year, hurt by currency — and World Cup marketing costs. As disappointing as that was for investors, at least it sets ADDYY up for easy comparisons next year.
As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.