Nike and Adidas compete to secure World Cup-led sales growth

When the FIFA World Cup begins in North America in June, the trophy won't be the only prize up for grabs. Nike Inc. and Adidas AG will fight on and off the court to win sales and raise the profile of their brands in the United States and around the world. With games staged in their home markets and Elliot Hill as CEO long enough to make a difference, Nike may lose the tournament.

But Hill must overcome the challenge from Adidas, led by Bjoern Gulden, who will seek to consolidate the German brand's position as a leader in sports-inspired fashion and use the brand's buzz to capture a larger share of the market for products that help footballers kick harder.

With the World Cup spread across the United States, Canada and Mexico, Nike has the natural advantage. North America is its largest market and contributed more than 40% of sales in its most recent fiscal year. While the company is still struggling in China, Nike's sales in North America are growing again. The company also sponsors the United States and Canadian teams. But it's not just sporting nations that matter today.

The sport has undergone a “Kardashianization,” where the power of individual stars eclipses national or club allegiances, and Nike has a strong roster in this regard as well.

Hill became CEO of Nike in October 2024. It takes about 18 months for new products to go from the design room to the store. So it's the perfect time for a set of new cues and kits. For example, Nike teams will for the first time use its Aero-Fit cooling fabric, which Hill compared to “air conditioning for the body,” to help its athletes face what experts fear could be extreme temperatures. It has also launched the latest version of its Tiempo football boots, worn by Brazilian Estevao Willian.

And in a look at Gulden's three-stripe arch, Nike is stepping up its efforts when it comes to soccer gear that can be worn off the pitch. It recently unveiled Hollywood Keepers, a streetwear collection based on the bold styles of goalkeepers from the '90s and early '00s. The versions that goalkeepers will wear on the field will be revealed closer to the World Cup, giving a clear idea of ​​what Nike's team uniforms will look like.

The CEO is no genius with products like Adidas' Gulden, but the Nike veteran, who people who know him describe as someone who lives and breathes the brand, inspires staff, including sneaker designers. Retailers appear to be excited about their selection for the World Cup, committing to sell 40% more soccer products by volume than they did for the 2022 World Cup, Hill said when announcing second-quarter results earlier this month. The tournament could mean $1.3 billion in additional revenue for Nike, according to analysts at RBC Capital Markets.

The new shoes and uniforms will be backed by Nike's significant marketing budget, estimated by RBC at about $5 billion annually. Given the home crowd and such a prominent opportunity to win with the sport, as Hill describes his strategy, we can expect the full force of the Nike machine to be brought to bear in June. It's heating up with a youth-led street soccer tournament called Take the Game, which took place in Los Angeles and most recently Miami, and will reach 20 more cities around the world in 2026.

But Nike won't do things your way. Adidas typically outperforms in football, given its rich heritage in the game. They will also provide the official tournament ball.

Gulden's strategy is to take its success in everyday footwear and apparel to performance apparel, where Hill is also specializing. For example, the head of Adidas is expanding its Originals line, which is normally more associated with casual clothing, into sports. Expect their trefoil logo and retro three stripes to be present at the World Cup.

But Gulden doesn't neglect Adidas' style credentials. While some fans will want replica jerseys, others will prefer a pair of sneakers in the team's colors. Jamaica, sponsored by Adidas, lends itself well to that type of collection. Gulden has spoken in the past about making the clothes worn by athletes more stylish. Instead of fashion being a distraction, he wants Adidas' sponsoring teams, including host country Mexico, to be excited about wearing their gear.

He estimates the event could generate 1 billion euros ($1.2 billion) in sales. And he has an incentive beyond cash through the register: He wants to build the Adidas brand in the United States and is thinking beyond soccer, to baseball, basketball and American football.

Competition from rival brands cannot be ruled out either. Puma SE sponsors Portugal and new CEO Arthur Hoeld wants to establish the company as one of the top three sports brands in the world, with football being one of its focus areas. Skechers USA Inc. has moved into sports and sponsors Bayern Munich forward Harry Kane. Privately held New Balance, which aims to reach $10 billion in annual sales in the coming years, up from $7.8 billion in 2024, also has a big soccer business, sponsoring English winger Bukayo Saka. Meanwhile, Reebok is making a comeback under the ownership of Authentic Brands Group Inc.

So far, running brands like On AG have not ventured into football, but the World Cup will be a platform to promote sport and fitness in a broader sense. Therefore, wildcards cannot be discarded. An example: Athleisure brand Vuori lures tennis star Jack Draper away from Nike.

Hill must fire both Adidas and the upstarts to make the most of the World Cup opportunity. Crucially, it must also avoid any self-inflicted wounds, such as Nike coming under fire for making the women's track and field uniform too revealing ahead of the 2024 Olympics. And the Kardanization of the sport poses its own risks, as individual players can be unpredictable. Remember Cristiano Ronaldo refusing Coca-Cola in the delayed UEFA Euro 2020 matches in 2021?

But if Hill can unleash some deadly shots without an own goal, everything is on the line in the summer tournament.