The Olympics mean so much to the athletes and nations competing but this year they might just matter just as much to Nike.
Why? Because the company is having a terrible year.
Nike’s stock is down more than 10% so far this year, according to CNN Money, making it the worst performing stock on the Dow. During the Olympics though, Nike will become highly visible as an official sponsor of Team USA.
It’s worth remembering that a 30% surge in growth made Nike the Dow’s top performer in 2015, meaning that things aren’t quite as bad as they may seem. Yet.
Adidas’ resurgence makes things interesting, while Nike’s sales in America, which account for almost half of all revenue, were flat in the last quarter. The company still performs well in China and Western Europe, but as China’s middle-class grows home-grown brands gain more influence.
It all means that the Olympics hold more weight this year for Nike than they normally would, and they’ll be hoping people see that Swoosh on successful athletes and get buying.