Adidas won the marketing battle against Nike at the World Cup. Investors took note.

Sportswear manufacturer Adidas has gained a marketing advantage over its American rival Nike ahead of the World Cup final: both teams competing in the final will take the field wearing the German brand’s uniforms. Analysts expect the tournament to boost Adidas’s sales, improve its quarterly results, and allow the company to raise its forecast for the full year 2026, according to Bloomberg. Investors have taken note of this success.

Regardless of the outcome of the final match on Sunday, July 19, Adidas will receive maximum exposure because the Spanish and Argentine national soccer teams wear uniforms from the German brand, according to Bloomberg. An additional boost could come from a victory by Argentina, led by Lionel Messi, which could potentially spark a new wave of demand for the country’s famous white-and-blue national team jerseys, the publication notes.

Since the start of the World Cup on June 11, Adidas shares have risen by about 4.6% and reached an eight-month high last week, according to Bloomberg. By comparison, Nike shares have gained only 1.4% since the start of the tournament. The Brazilian and French national teams, both of which have contracts with the company, were eliminated in the round of 16 and the semifinals, respectively. France will face England—which is also sponsored by Nike—in the third-place match.

HSBC analyst Akshay Gupta raised his price target for Adidas shares to €210 on June 30, midway through the tournament—a level roughly 16% above the current price, according to Bloomberg. During the first week of the tournament, foot traffic at Adidas stores in the U.S. rose 16% compared with last year, while Nike saw a decline in this metric, Gupta said.

The World Cup final will take place just a week and a half before Adidas releases its quarterly earnings report on July 30. The company could post record sales growth starting in 2024, and the tournament will bring in about €300 million in additional revenue, which could allow management to raise its annual forecast, according to an HSBC analyst.

Adidas is the clear beneficiary of this World Cup, according to Morgan Stanley analysts led by Édouard Aubin, as quoted by Bloomberg. They have raised their earnings forecasts and increased their price target to €215. Adidas’ current valuation remains attractive, especially given the “halo effect” from the World Cup, which could help the company finally strengthen its position in the U.S. market, where it has historically struggled to compete, according to a Morgan Stanley analyst.

On July 15, Piper Sandler also raised its price target for Adidas shares to €200. Analysts maintained their “Overweight” rating (which corresponds to a buy recommendation).

At the close of trading on July 17 on the German Xetra exchange, Adidas shares fell 1%, though they are up 7% year-to-date. Meanwhile, Nike shares fell nearly 2% in New York trading and have plummeted 31% since the start of the year.

This article was AI-translated and verified by a human editor