Nike has reported a better-than-expected net income as heavy investments in marketing for the World Cup tournament boosted the company’s performance.
Marketing spending rose 36% as it signed up Europe’s famous soccer players for World Cup-themed commercials.
Despite increased expenses, the company’s earnings have exceeded expectations.
In its latest quarterly report, Nike said its profit increased 1% to $698 million, compared to the same quarter last year.
The company’s great fourth quarter result is boosted by heavy spending on World Cup marketing campaign.
No. 1 soccer brand
Nike said it is sponsoring more national teams in the World Cup today than major rival Adidas. The companies compete in sponsorship of players for their share of sales of shirts, balls, shoes, and other gear.
Adidas, however, recently faced a challenge as Luis Suarez has been suspended from all football-related activity. The company said it not use him for any further promotion.
“Adidas fully supports Fifa’s decision. Adidas certainly does not condone Luis Suarez’s recent behaviour and we will again be reminding him of the high standards we expect from our players,” a spokesperson said in an emailed statement.