The 2015 National Football League (NFL) season is well underway — the three weeks of play so far have seen many twists and turns, taking fans by surprise.
Fans are turning up in huge numbers in apparel displaying their favorite team logos and merchandise. Sportswear companies sign football celebrities onto their rosters to add more brand power to their sports apparel, which helps boost higher sales.
Catching the trend, we’ve spotted three buzzing sportswear stocks we expect to rock this NFL season.
As the official apparel provider of the NFL, NIKE Inc. NKE shares has been upbeat since the start of the season. This major sportswear player has presented a customizable feature in a new NIKEiD option that allows customers to create their own team-inspired NIKE Dunk High or Low sneakers. The feature allows users to imprint the team’s logo on the heel and on the shoe’s tongue to boost the team spirit. NIKE also introduced 2nd Patriots NIKE Lunar Force 1 sneakers ahead of the NFL season, designed with the help of New England Patriots owner Robert Kraft.
Shares of NIKE soared to a new 52-week high of $125.95 on Friday, Sep 25 after it reported better-than-expected sales and profit growth for the first quarter of fiscal 2016, with revenues increasing 5% to $8.4 billion — or 14% excluding currency fluctuations. The stock has risen 12.6% since the season began.
Nike rival Under Armour Inc. UA has had an exclusive licensing arrangement with the NFL since 2009. It recently signed a multi-year extension of its NFL Scouting Combine contract under which Under Armour will maintain exclusive rights as the NFL Scouting Combine’s official apparel outfitter. It will further introduce an expanded line of officially licensed Combine apparel for fans.
Starting from the 2016 season, Under Armour will have expanded rights to produce officially licensed NFL team-specific Combine performance apparel, gloves and accessories for fans. The company saw a huge upsurge in sales this season, having sold out its Tom Brady No. 199 T-shirts already. The sportswear maker signed a sponsorship deal with the NFL star in 2010. Under Armour’s subtle, Brady-themed shirt was a hit with fans of New England Patriots’ quarterback.
Shares of this sportswear company jumped by more than 8% since the commencement of the NFL league this season. Though Under Armour posted lower earnings in Q2, sales had once again expanded at a double-digit pace. Revenues in Q2 climbed 29% to $783.6 million. The company reported positive earnings surprises in three of the four quarters with an average beat of 11.27%
Last year, outdoor and sports apparel maker Columbia Sportswear Company COLM inked a multi-year apparel licensing partnership with the NFL franchise, the Dallas Cowboys. Under the deal, Columbia Sportswear provides co-branded sportswear, outerwear and accessories for Dallas Cowboys fans. Shares of this active wear retailer have surged approximately 10.0% since the beginning of the season.
With an average positive earnings surprise of 23.9% over the trailing four quarters, the company is expected to witness earnings growth of 14.8% in fiscal 2015. The Zacks Consensus Estimate has also been trending upward over the past 60 days.
Bottom Line
The league's energy and vibrancy are ably conveyed by these sports apparel companies. Let the interest rate speculation and global concerns take a back seat as we cheer our favorite teams along with these chosen stocks.
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