Adidas (OTC:ADDDF), the German sportswear maker, has had an uneasy 2023 — dropping the top-selling Yeezy brand following anti-semitic remarks by its curator Kanye West, which cost the company around $1.3 billion in sales.
But it’s on the turnaround. Third-quarter results on Friday were better than expected and CEO Bjorn Gulden made all the right sounds of a company focusing back on sport rather than celebrity.
And, despite the contrition and the “our current performance is not good enough” rhetoric, the shares are on a roll, up 50% this year. Great for any shareholders getting in at the beginning of the year. The shares are, however, down 74% from their July 2022 peak.
This is a similar story to that of the world’s biggest sportswear maker Nike (NYSE:NKE). Riding high at a record $179 in November 2021, its shares currently trade 36% lower at $114.83.
Also Read: Nike Has ‘Stronger Revenue Growth Ahead,’ Says Bullish Goldman Sachs
Olympics and Euro 2024 Showcases
The total annual global value of the sports apparel market is around $200 billion according to market research company Statista.
And 2024 could be a record-breaking year for the sector with two major international events over the summer.
Kicking off on June 14, the Euro 2024 football championship plays out over four weeks snd beginning on July 26, the Paris Olympics runs through to Aug. 11.
The Olympic Games is particularly important. A global event that attracts millions of viewers worldwide, it’s the perfect opportunity for sports apparel companies to showcase their products — often tying in with sporting stars as their sponsors.
Among the new sports being introduced at the Paris Games next year is breaking (dance) — with its roots in hip-hop dancing and urban streetwear — which plays into the hand of brands such as Nike, Adidas and Under Armour Inc (NYSE:UA) and retailers such as Dick’s Sporting Goods Inc (NYSE:DKS), Columbia Sportswear Company (NASDAQ:COLM) and Academy Sports and Outdoors Inc (NASDAQ:ASO).
Nike is already the official sponsor of the U.S., Japanese and South Korean breaking federations, and Adidas revealed in June that it had signed up “B-Girl 671” — the world number-one female breaker, China’s Liu Qingyi.
Sales Boost Effect
Not only do these sporting events drive up the…
Click Here to Read the Full Original Article at Cryptocurrencies Feed…
