As far as stages go, there are none bigger for branding and product placement than the summer Olympics. Every four years, sportswear brands go to war in an effort to capitalize on the games' visibility, with Nike typically emerging as the apparent victor. However, things are changing this time around.
According to a report by Forbes, Nike's stock has risen just 1% since last Friday, while Under Armour is up 2.3% and adidas is leading the pack at 5.9%. This following a quarterly earnings report in which adidas announced that North American sales are up 26%. In fact, down 10% this year, Nike is the worst performing Dow stock in 2016.
This isn't exactly an anomaly — Nike's stock has dipped during the past two Olympics after experiencing 4-19% growth during six summer games from 1984 to 2004, according to Bespoke Investment Group.
“You have increased competition. Under Armour is a public company out there now competing for more sponsorships. It’s more expensive for the companies involved,” said Bespoke cofounder Paul Hickey.