They Did It

Nike shares jumped more than 12% after trading closed yesterday following a better-than-expected earnings report. The shoe and apparel giant beat its first quarter 2021 revenue expectations by generating $10.59 billion, well past Wall Street analyst expectations of $9.15 billion.

At the core of the solid quarter was an 82% year-over-year increase in online sales. That helped bump net income to $1.52 billion, up from $1.37 billion in the same quarter last year.

Nike shares are up almost 15% year-to-date.

Nike’s Q1 FY21 By The Numbers: 

• $10.59 billion in revenue, 0.6% drop year-over-year
• Sales in China grew 6%
• Sales in North America dropped 2%

Despite a bumpy year due to the pandemic, all signs are pointing to the advertising market returning to normal in 2021. Advertising around traditional mediums like TV and radio is expected to stabilize, while digital ads are projected to grow.

Advertising spending is looking at a 4.6% overall decline in 2020 compared to 2019, including the 7.2% drop in the first half of the year. Next year, forecasts suggest ad spending will grow 4%.

The recovery is being led by four major factors: economic reopenings, political ads around the U.S. presidential election, the return of sports, and next summer’s Olympics. The Tokyo Games — which were postponed to 2021 — should bolster the year’s advertising market with approximately $800 million in additional spending.

Three-Year Snapshot: 

2019: $224 billion in ad spending

2020: $213 billion in projected ad spending

2021: $222 billion in projected ad spending

2020 Advertising Takeaways:

• Linear ad sales — including TV and radio — are expected to see a 16% year-over-year decline.
• Digital advertising is expected to grow 4.2% year-over-year to $133 billion.
• Amazon ad sales grew 43% in the first half of 2020, including Twitch’s 52% increase.

The NFL is back and so is sports betting. During Week 1 of the season, theScore saw 50% more money wagered than during Super Bowl week. Week 2 showed no sign of that momentum slowing down.

Sportsbook operators reported impressive numbers, with PointsBet seeing a 10% increase compared to Week 1 in bets and a 20% increase in money wagered. Meanwhile, Barstool Sports launched its sportsbook app in Pennsylvania, setting a download record.

Betting Download Breakdown: 

• Barstool Sportsbook had 63,000 downloads in its opening weekend, or 21,000 a day
• FanDuel’s biggest day ever, Sept. 13, 2020: 19,000 downloads
• DraftKings’ biggest day ever, Sept. 10, 2020: 15,000 downloads

After negotiating his own record-breaking contract and furthering his investment portfolio, Arizona Cardinals wideout DeAndre Hopkins is back at it: he has now invested in BioSteel Sports Nutrition as part of a multi-year endorsement deal.

Earlier this month, Hopkins — who cut ties with agency CAA Sports in June — signed a contract extension that makes him the highest-paid non-quarterback in NFL history. The two-year deal is worth $54.5 million in new money, including $42.75 million guaranteed.