Market Overview

This Small Olympic Outfitter Outperformed Nike And Under Armour

This Small Olympic Outfitter Outperformed Nike And Under Armour

If you cheer Team USA this Olympics, there’s a good chance you’ll also cheer Team Nike Inc (NYSE: NKE).

Of course, Polo Ralph Lauren Corp (NYSE: RL)’s has a hand in the non-athletic gear and Omega comes through on watches, but for the most part, Nike has a grip on the national brand. Browse the official team shop and you’ll find that, if the hoodie isn’t Swoosh marked, it’s white labeled.

But Columbia Sportswear Company (NASDAQ: COLM)’s managed to claim a relatively tiny amount of Olympics real estate as a sponsor of the U.S., Canadian and Russian freestyle ski teams — an impressive feat for such a tiny outfitter.

The Financial Medal Podium

The $5.1-billion sportswear company isn’t even in the same league as the $104.45-billion Nike, an industry juggernaut. And by measure of market cap, it’s even outpaced by the $5.71-billion Under Armour Inc (NYSE: UAA), which scored its first national Olympics sponsorship this year with Team Canada.

Nonetheless, Columbia seems to have the most positive Street reputation.

The firm boasts a winning ratio of eight Buys and seven Holds. By comparison, Nike has 13 Buys, 17 Holds and one Sell, while Under Armour has five Buys, 14 Holds and 10 Sells.

And Columbia’s proven superior in other events. The firm has outperformed Nike and Under Armour over the last year, rising 31.3 percent against the rivals’ respective 20.2-percent pop and 53.5-percent decline.

The Meaningfulness Of Olympic Marketing

Still, Columbia could use a little Olympics exposure.

Event affiliation has been known to improve financial performance, with the summer games in Rio propelling Nike to an 8-percent revenue boost and 9-percent net profit increase.

Nike and Under Armour will have a stronger presence in Pyeongchang this winter and may see greater absolute sales impact, but Columbia’s small hold on skiing might provide a relatively significant windfall.

Related Links:

McDonald's No Longer A Premier Olympic Sponsor

Why Olympic TV Ratings Were So Poor And What NBC Got Wrong In Rio

From McMuffins To Mobile: Tracking Olympic Sponsors With TD Ameritrade's JJ Kinahan


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