World Cup Helps Nike Deliver Strong Results

Nike Inc has reported its latest financial figures, with the FIFA World Cup helping the sports brand deliver better-than-expected quarterly results, as demand for apparel and footwear rising in North America and Western Europe. 

The rise of 3.2% in the fourth quarter follows heavy marketing in the build up to the competition as part of its #riskeverything campaign. The company said its marketing expenses rose 36% in the fourth quarter, mainly due to expenditure related to the World Cup.

Revenue from North America rose 10% in the fourth quarter ended 31st May, while revenue from Western Europe jumped 18%, excluding the impact of currency fluctuations.

This year’s FIFA World Cup in Brazil also marks the first time that Nike is sponsoring more national teams than Official Sponsor, adidas.

Nike, whose ambassadors include the likes of Cristiano Ronaldo, Neymar Jr., Eden Hazard and Wayne Rooney, has seen its “Winner Stays” commercial viewed by over 82 million views on YouTube.com, while its three films that form the #riskeverything campaign has been watched a total of 372 million times. 

Between March and May, the brand launched its latest range of football footwear, including the Mercurial Superfly – wore by Ballon d’Or winner Cristiano Ronaldo – Magista Obra, the Nike Hypervenom 2014 World Cup Boot and the Nike Tiempo Legend V World Cup Boot.

As a result, there are also more players wearing Nike boots in the World Cup than all other brands combined, according to the brand. 

Nike said it expected “tremendous energy” around the World Cup to help its first-quarter revenue grow in low double digits in percentage terms, including the impact of currency fluctuations.

Meanwhile, joint-top goal scorer of the competition and Nike ambassador, Neymar, revealed earlier this week he will be wearing a limited-edition gold version of the Hypervenom boot for the remainder of the tournament.