Why Nike Could Be One Of The Big Winners Of The Summer Olympics In Tokyo

The 2020 Summer Olympics in Tokyo is scheduled to start July 23 after being delayed a full year due to the COVID-19 pandemic.

The games will bring a return of international competition and possibly have record viewership. One company that could benefit from a strong showing of the athletes wearing Nike Inc NKE products.

What Happened: Some of the most-watched sports and medal ceremonies will feature heavy product placement by Nike, which could lead to a boost in apparel sales and marketing for the company.

Nike is bringing its hands-free entry shoe — the Glide FlyeEase — to the 2020 Olympic Games.

Athletes from the U.S. that win medals will be outfitted in a sustainable themed outfit made 100% from recycled material from Nike. The athletes will also have the Glide FlyEase shoe made from partially recycled material and features a flexible heel and snug fit.

Along with outfitting athletes on the medal stand, Nike is behind the uniforms worn by the USA basketball, skateboarding, and track and field teams. Several international soccer teams will also wear Nike uniforms.

Track and field athletes will also be seen wearing the Nike Air Vapormax 2000, a low-impact shoe from Nike.

Related Link: Nike Has Long Runway Growth With Focus On Direct Sales, Margin Growth: Analyst React To Q4 Sales

Why It’s Important: Comcast Corporation CMCSA could benefit from airing the 2020 Olympic Games across its networks. The company is seeing record purchases of commercials and anticipating strong viewership.

The Olympic Games could provide a good launch point for the Glide FlyEase, which will retail for $120 and could see huge demand from the Olympics.

Nike’s focus on sustainability could get strong attention from the media and be mentioned by commentators during the games, which could help boost Nike's ESG (environmental, social, governance) profile.

An element always anticipated at sporting events is breaking records. Years ago it was new swimming uniforms from Speedo, which were credited with helping break several records.

Nike aims to increase athlete performance in track and field with newly designed shoes and the “next to skin fit” uniforms. Record-breaking performances can lead to positive Nike coverage.

NKE Price Action: Shares of Nike are up 14% year-to-date and hit a new 52-week high of $162.42 on Monday. Shares of Nike have risen 184% over the last five years.

Photo: Courtesy Nike