By Monica Houston-Waesch
FRANKFURT--Germany’s Adidas AG declared a World Cup victory over rival
sporting-goods providers on Monday, the day after the country’s soccer
team clinched its fourth world championship in Brazil.
The company, which outfitted the German national team as well as beaten
finalists Argentina, is counting on the tournament to boost sales this
year and is targeting soccer-related revenue of EUR2 billion ($2.7
billion) compared with EUR1.5 billion in 2010 when the World Cup was
last held.
“Our soccer revenue is at a record level, and we were the most mentioned
brand in social media. With that, we clearly dominated the tournament
on the field and off,” Chief Executive Herbert Hainer said Monday.
Investors appeared to agree, with Adidas
(FRA:DE:ADS)
shares rising 2.5% on Monday.
As well as outfitting several competing national teams, Adidas, which
expects to sell over 14 million soccer balls and 8 million jerseys this
year, pays FIFA to be an official sponsorship, supply, and licensing
rights to the event, a position it has secured until 2030.
For Adidas, the association with the World Cup is its ace in the hole
against the number-one sportswear maker Nike Inc.
(NYSE:NKE)
because soccer is one sport where the Germans, like on the pitch, are out ahead of their U.S. rival.
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