With the European Cup underway, it might be worth considering how sports play a role in the broader perception of companies. Some companies, despite being relatively unknown, pour significant sums of money into marketing during major sporting events. Other stocks are directly linked to the sporting events, giving them a leg up in organic marketing and product placement.
While for most Americans, the European Cup does not change their perceptions about companies like BYD and AliExpress, Europeans still make up a generous portion of the global markets for sports and commercial stocks alike. Thus, keeping an eye on which companies successfully weave into the marketing of the European Cup can be a good clue as to their potential future performance in the short term.
Adidas (ADDYY)
With the European Cup currently being held in Germany, Adidas potentially has one of the best chances to gain market share from this year’s tournament. The company, known for its endorsement of star athletes and providing the kit for several European teams, has carved out a reputation for high quality and success in the European market.
Now, with the release of several redesigned retro shoes like the Samba and Gazelle, Adidas has successfully broken into the casual sneakers market once more. The company’s products stand out by using unique colorways and materials.
From a financial standpoint, Adidas’ first-quarter earnings report provided general relief to many investors. With a 3.5% increase in revenue year over year and a quarterly net income of 170 million EUR, this sports stock seems headed in the right direction for a nice bump in share value should it repeat the results in the next earnings report.
Nike (NKE)
Another sneaker and sportswear giant, Nike, has managed to outcompete Adidas for uniform visibility in the European Cup. Nike remains the most represented brand with nine teams compared to Adidas’ six teams. This kit visibility extends beyond the European Cup and into the club scene, where it sponsors several elite and followed clubs like Paris St. Germain and Real Madrid.
Keep an eye on the Nike earnings call today, as it may clue investors into the company’s big push in organic professional sports marketing paid off this year. Nike’s market dominance is not likely to erode so quickly that it cannot rebound.
Coca-Cola (KO)
Just like how summer and football go hand-in-hand, so does Coca-Cola and major sports sponsorship. Despite Cristiano Ronaldo’s disdain for the company during the 2021 European Cup, which saw KO stock value dip 1.6%, Coca-Cola is back in full swing as a sponsor of this year’s European Cup.
Coca-Cola may not be the drink of choice for high-level athletes, but it certainly is the most popular soft drink among those watching the tournament. Taking a look at Coca-Cola’s financials, we see steady performance so far this year with a generous growth of 9% in share value over the last six months.
Its first quarter results showed relatively positive metric growth in revenue, and net income. This trend is likely to continue into the next earnings report as Coca-Cola focuses on marketing expenses for the upcoming 2024 Paris Olympic Games.