Nike's swoosh will be notably absent from the World Cup final. Argentina's semi-final win over England on Wednesday crushed the sportswear giant's hopes of sponsoring a team on the tournament's biggest stage on Sunday.
Amid a fierce brand battle on and off the pitch, the outcome represents an assured visibility boost for rival Adidas , which outfits both finalists: Argentina and Spain, Reuters reported.
Adidas had sponsored a total of 14 national teams in the tournament. None of Nike's 12 teams, including semi-finalists England and France, managed to secure a spot in the final match. Both companies have invested heavily in the soccer tournament, but Nike has been relying on it for sales and visibility as it tries to right its ship amid years of steadily shrinking market share. Even a World Cup lift was unlikely to shift Nike's trajectory. The sportswear company last month signaled that CEO Elliott Hill's turnaround strategy faced significant obstacles, as persistent weakness in China and a cautious outlook overshadowed a modest fourth-quarter revenue beat. The company's shares have lost nearly a third of their value this year as investors grow impatient with Hill's progress.
"There are more important issues, such as footwear innovation, inventory control, and stabilizing sales and margins in China," said Morningstar analyst David Swartz. "Adidas got more publicity, but that’s just the way it goes."
A Nike spokesperson said the company always wants its athletes and federation partners to go as far as possible, but that "our vision for football has never been tied to a single moment."
Adidas called the World Cup final a "proud moment" for the company, while declining to share sales projections.
