Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

NIKE World Cup: A Big Opportunity

NIKE World Cup: Founded in 1964, NIKE, Inc. (NYSE:NKE) has helped revolutionize athletic footwear, apparel, equipment and accessory products for the last 40 years. It is currently the dominant player (and largest seller) in its category. For this company, emerging markets in Asia and Latin America represent massive growth opportunities. There is a growing demand for its products in these regions, thanks to the interest in sports and the growing economic prosperity their people have been experiencing. In this sense, Brazil represents a key market to increase its global footprint and market share.


Next year, the country will hold the World Cup and in 2016 the Olympics. On its latest letter to shareholders, the company’s management has made it clear that it is preparing an extraordinarily ambitious marketing plan before these events take place. Its gains are also likely to increase as NIKE will also be the sponsor for Brazil National Football team in 2014 World Cup.

The firm is already known for its strong branding –it is famous for its “swoosh” logo and its “just do it” tag line, as well as for its association with celebrity sportspersons. Although adidas AG (FRA:ADS) is an opponent to consider and will continue to be one next year in Brazil, NIKE has many other competitive advantages that will help it continue -and deepen- its global expansion.

NIKE has several international opportunities for revenue expansion. Along with that, the company owns a very strong innovative culture and significant pricing power, which help it keep its margins above industry averages. During the past quarters, the company has had impressive and solid top-line growth, going up over 30% year to date. Also, as of September 23rd this year NIKE will be the second ever sports apparel company to be included in the Dow Jones Industrial Average, or DJIA. The firm has also been engaged in a consistent share repurchase program, thus showing its commitment of returning value to shareholders.

Brazil poses a key opportunity for the company to keep expanding its promising global marketing strategy and its market share. Besides selling world cup sports products, it will start a “Make History” campaign through a mobile app. This will enhance users’ experience with active participation in the World Cup, as it will allow them to compete for their countries online. The firm will also take part in a platform that will give app users the chance to ask questions to football stars sponsored by NIKE. The company expects this Brazilian opportunity to further fuel the company’s sales and to keep increasing its consistent positive earnings along with a strong revenue growth. Check back for more updates on the NIKE World Cup situation.

Disclosure: Pamela Gaviño holds no position in any stocks mentioned

Recommended Reading:

NIKE, Inc. (NKE), General Motors Company (GM): Will U.S. Fans Boost Manchester United PLC (MANU) Earnings?

Union Pacific Corporation (UNP), NIKE, Inc. (NKE), ConAgra Foods, Inc. (CAG): A Quick Guide for the Long-term Investor

NIKE, Inc. (NKE), Under Armour Inc (UA), Lululemon Athletica inc. (LULU): Buy What You Know… At the Right Price

Disclosure: none

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.