Last year was arguably the greatest year in the history of sports. Usain Bolt, Simone Biles and Michael Phelps created Olympic memories for millions around the globe. Top storylines on the team side included the Chicago Cubs breaking a 107-year curse and the Cleveland Cavaliers ending their city's own 52-year title drought with a comeback from a 3-1 deficit to defeat the Golden State Warriors, fresh off a record regular season of 73 wins. The Villanova Wildcats won the NCAA tourney with a three-point buzzer-beater and Leicester City overcame 5,000-to-1 odds to win the Premier League in the most stunning underdog story in sports.
Stephen Curry's signature shoes helped boost Under Armour's fortunes, but the company's stock was hammered in 2016. (Photo by Jason Miller/Getty Images)
Good memories for fans. The memories are not so good for stockholders of three of the biggest names in sports. Under Armour (-40%), Manchester United (-19%) and Nike (-18%) delivered the three worst performances during 2016 out of 33 publicly-traded companies with an interest in the business of sports.
Under Armour was been a stock market darling as its sales grew ten-fold over the past decade. The brand owned 2015 with sales up 28.5% and UA endorsers Stephen Curry, Bryce Harper and Cam Newton winning the MVP awards in their respective leagues, while fellow UA endorser Jordan Spieth captured the PGA's Player of the Year award.
The company had 26 straight quarters of at least 20% sales growth, but the stock fell 14% on Oct. 25 after warning that growth would slow in the coming years. Profit margins are also expected to be hit by increasing levels of investment. The company is still targeting sales of $7.5 billion in 2018, compared to $4.7 billion for the latest 12 months.
UA's stock is off 40% since a new class of share began trading in March. Even with the big stock decline, Under Armour still trades at 39 times trailing earnings compared to 25 for the S&P 500.
Manchester United is one of the rare sports teams to trade on a U.S. stock exchange. Shares of the English soccer club plummeted early in 2016 amid concerns of the team's performance on the pitch, despite new sponsor deals with Adidas and Chevrolet worth nearly $200 million a year. United eventually finished fifth in the Premier League standings and will sit out Champions League for a second straight year. The stock finished off 19% for the year. The Red Devils currently sit sixth in the 2016-17 standings, but the stock is up 9% in the first few days of trading in the new year.
Sportswear giant Nike with $33.5 billion in sales was the third-worst performing sports stock of 2016, off 18%. It was also the worst among the Dow 30 stocks. Nike's stock had tripled over the previous five years, but ran out of gas last year after delivering a soft outlook for North American growth. The company did lock up two of its biggest brand ambassadors, LeBron James and Cristiano Ronaldo, over the past 13 months to "lifetime" deals that could be worth as much as $1 billion for each global icon.
After lagging behind Nike and Under Armour in recent years on both buzz and performance, Adidas rebounded in 2016. The stock jumped 64%, third best among all sports companies. Adidas brought in a new CEO in Kasper Rorsted after 15 years of Herbert Hainer a the helm and restructured to promote a more collaborative effort between its U.S. operations and German headquarters. Adidas passed Skechers to be the No. 2 footwear brand in the U.S. in part thanks to its relationship with Kanye West and the buzz around the West-designed Yeezy Boost sneakers.
The top performer in sports for 2016 was Johnson Outdoors, up 84%. The stock for the maker of outdoor recreation products was up more than 100% before reporting a quarterly loss in December, which sent shares down 22%.
| 2016 Total | Recent | Market value | Revenue | ||
| Company | Return | price | ($mil) | PE | ($mil) |
| Johnson Outdoors | 84% | $37.77 | $377 | 28 | $434 |
| Big 5 Sporting Goods | 81 | 17.40 | 381 | 28 | 1,030 |
| Adidas | 64 | 76.68 | 32,086 | 28 | 20,791 |
| Dicks Sporting Goods | 52 | 55.18 | 6,216 | 19 | 7,679 |
| Zumiez | 45 | 22.75 | 566 | 28 | 815 |
| Vail Resorts | 29 | 162.26 | 6,483 | 41 | 1,605 |
| Daktronics | 28 | 11.00 | 484 | 50 | 589 |
| Cabelas | 25 | 58.83 | 4,029 | 24 | 4,199 |
| Lululemon Athletica | 24 | 69.41 | 9,515 | 34 | 2,259 |
| Hibbett Sports | 23 | 37.80 | 830 | 13 | 972 |
| Black Diamond | 21 | 5.80 | 174 | NA | 151 |
| Columbia Sportswear | 21 | 57.28 | 3,998 | 24 | 2,359 |
| Callaway Golf | 17 | 11.69 | 1,100 | 32 | 862 |
| Electronic Arts | 15 | 80.63 | 24,331 | 21 | 4,543 |
| Foot Locker | 11 | 73.00 | 9,663 | 16 | 7,660 |
| Nautilus | 11 | 19.55 | 609 | 19 | 389 |
| International Speedway | 10 | 37.65 | 1,714 | 23 | 658 |
| Brunswick | 9 | 56.43 | 5,061 | 21 | 4,392 |
| Speedway Motorsports | 8 | 21.80 | 896 | 25 | 517 |
| Churchill Downs | 7 | 148.95 | 2,474 | 29 | 1,303 |
| Finish Line | 6 | 18.89 | 766 | NA | 1,915 |
| Madison Square Garden | 6 | 176.15 | 4,221 | NA | 1,147 |
| World Wrestling Entmt | 6 | 18.92 | 1,446 | NA | 700 |
| Escalade | 3 | 13.40 | 192 | 18 | 166 |
| Liberty Media Braves* | 3 | 20.82 | 1,030 | NA | NA |
| Dover Motorsports | 1 | 2.30 | 84 | 19 | 47 |
| Walt Disney | 1 | 107.44 | 170,986 | 19 | 55,368 |
| Polaris Industries | -2 | 84.87 | 5,437 | 21 | 4,404 |
| Arctic Cat | -8 | 16.42 | 214 | NA | 557 |
| Sturm Ruger | -9 | 52.90 | 1,004 | 12 | 655 |
| VF Corp | -12 | 53.72 | 22,225 | 22 | 12,594 |
| Nike | -18 | 53.07 | 88,371 | 23 | 33,508 |
| Manchester United | -19 | 15.45 | 2,534 | 60 | 730 |
| Under Armour* | -40 | 26.57 | 12,494 | 39 | 4,691 |
| *Braves return since 1st day April close; UA return since new stock started trading in March. | |||||
| NA: Not applicable. Source: FactSet Research Systems. | |||||
No hay comentarios.:
Publicar un comentario