# Ford Shares Climb as Profit-Rich SUVs Drive Outlook Higher

An episode of [Bloomberg Intelligence](https://invisiblenetwork.ai/podcast/326301337), 29 Jul 2026, 20 min.

Audio: https://podtrac.com/pts/redirect.mp3/tracking.swap.fm/track/UVBrz8bN8aM2Xe47PEPu/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/7f534b8c-9e91-429a-b102-ae3c00090c6d/c6841a87-6df6-49f8-bc86-b4960115ccdb/audio.mp3?utm_source=Podcast&in_playlist=0ad812bf-fd15-4012-a18c-ae3c00090c76

Watch Paul and Scarlet LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Intelligence hosted by Paul Sweeney and Scarlet Fu -Craig Trudell, Bloomberg Managing Editor of Global Business Coverage, recaps Ford earnings. Ford Motor raised its profit outlook for the second time this year as consumers continue to buy the automaker’s high-margin sport-utility vehicles. The company's quarterly earnings were better than expected, and it now expects to earn as much as $11 billion before interest and taxes this year, up from its prior forecast. -Diksha Gera, Bloomberg Intelligence Global Fintech and Payments Analyst, recaps Visa earnings. Visa reported a fiscal third-quarter profit that beat Wall Street estimates, with adjusted net income rising 8% from a year earlier to $6.3 billion. The company will eliminate roughly 2,600 jobs, affecting about 7% of the workforce, as part of an effort to operate more efficiently and focus on its biggest opportunities for growth. -Andrea Felsted, Bloomberg Opinion Columnist, discusses earnings from Hermes and Kering. Shares of Hermès International and Kering diverged by a record margin on Wednesday, marking a dramatic reversal in fortunes for the two luxury goods makers. Hermès shares slumped by as much as 11% to the lowest level since January 2023, after the company's Chief Financial Officer said product price hikes for 2027 would be smaller than this year. -Poonam Goyal, Senior U.S. E-Commerce and Retail Analyst at Bloomberg Intelligence, discusses why Nike and Adidas World Cup sales can last beyond the event. According to Bloomberg Intelligence: Nike and Adidas can turn World Cup kit dominance into post-tournament soccer gains, with Adidas' €1.5 billion in event sales, topping its initial €1 billion expectation, and the Spain-Argentina final all-Adidas matchup reinforcing demand. See omnystudio.com/listener for privacy information.

## Transcript

[0:02] Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the
[0:10] Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am
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[0:17] Speaker 1: Business App. Listen on demand wherever you get your podcasts,
[0:21] Speaker 1: or watch us live on YouTube.
[0:24] Speaker 2: We'll switch gears. Get back to the earnings front. Ford
[0:26] Speaker 2: stock's up five point seven percent today. Some good numbers here.
[0:29] Speaker 2: Let's break it down with Craig Trudel, Bloomberg Managing Editor,
[0:32] Speaker 2: Global Business Coverage. First question, why aren't you in London?
[0:36] Speaker 2: Did you come back here?
[0:37] Speaker 3: I'm back?
[0:37] Speaker 2: Oh? Okay, okay, talk to us about Ford here. The
[0:42] Speaker 2: stock is hired today.
[0:43] Speaker 4: Yeah.
[0:44] Speaker 3: Ford and GM really consistent across several fronts. I think
[0:48] Speaker 3: the fact that SUVs and pickups have been so strong
[0:51] Speaker 3: in this market, the fact that the Trump administration has
[0:54] Speaker 3: so relaxed emissions standards and fuel economy rules, able to
[1:00] Speaker 3: sort of go a whole hog and sell as many
[1:03] Speaker 3: SUVs and pickups as they possibly can, and that does
[1:07] Speaker 3: a heck of a deals, a sort of heck of
[1:10] Speaker 3: a boost to their bottom line.
[1:13] Speaker 5: What surprised you the most when you look at Ford
[1:16] Speaker 5: and GM and what they've managed to show as they
[1:19] Speaker 5: double down on what works.
[1:21] Speaker 3: Yeah, I think the execution has been strong. I think,
[1:26] Speaker 3: you know, they have been trying to sort of, you know,
[1:30] Speaker 3: pivot in a way that has to be really dramatic
[1:33] Speaker 3: considering the degree of change from one administration to the next.
[1:38] Speaker 3: The fact that the Biden administration wanted these companies to
[1:42] Speaker 3: sell a heck of a lot more electric vehicles, and
[1:46] Speaker 3: they built the plants to do so. They not only
[1:48] Speaker 3: built the car factories to do so, but the battery plants,
[1:52] Speaker 3: and Ford has been trying to sort of, you know,
[1:55] Speaker 3: make lemonade out of lemon in the fact that Americans
[1:59] Speaker 3: were not ready to buy electric vehicles at the rate
[2:01] Speaker 3: everybody was hoping for. Uh. And you know, both of
[2:04] Speaker 3: these companies are trying to sort of maybe turn some
[2:07] Speaker 3: of these battery plants into uh, you know, factories that
[2:11] Speaker 3: can actually make sort of storage units, which we've seen
[2:14] Speaker 3: Tesla turn that into a tidy little business. So I
[2:17] Speaker 3: think there's there's still you know, some some sort of
[2:21] Speaker 3: show there that that we need instead of just tell
[2:23] Speaker 3: that they're going to be able to make that transition,
[2:26] Speaker 3: but that's going to be something that we're going to
[2:27] Speaker 3: watch in in you know, the months and maybe even
[2:30] Speaker 3: years to come.
[2:31] Speaker 2: I mean, if I'm forward in GM, I think I
[2:35] Speaker 2: have to This is just kind of opinion. I think
[2:37] Speaker 2: my strategy has got to be maxim my shareholder value.
[2:40] Speaker 2: The way I do that is making pickup trucks and SUVs,
[2:45] Speaker 2: and my EV strategy has got to be driven by
[2:48] Speaker 2: the marketplace as opposed to policy. If that's the case,
[2:52] Speaker 2: I'm not sure where we're going to get to a
[2:54] Speaker 2: big EV percentage in this country. How are they thinking
[2:57] Speaker 2: about it?
[2:58] Speaker 3: Yeah, I mean I do think it's it's in interesting
[3:00] Speaker 3: that you still do hear Mary Bara you know, say
[3:04] Speaker 3: that that she thinks that that electric vehicles and batteries
[3:08] Speaker 3: are just the better power train. And I think, you know, candidly,
[3:12] Speaker 3: if you sort of drive in my experience, if you
[3:14] Speaker 3: drive you know, the same vehicle, one with a battery
[3:17] Speaker 3: in it and the other with a combustion engine in it,
[3:19] Speaker 3: it's actually a lot of fun to drive an electric vehicle.
[3:22] Speaker 3: The you know, the instant torque and the sort of
[3:24] Speaker 3: you know, get up is actually pretty great. And I
[3:28] Speaker 3: think avoiding you know, the gas pump right now is
[3:31] Speaker 3: also a big positive. So I think they're really stuck
[3:35] Speaker 3: in the situation of of you know, a lot of
[3:37] Speaker 3: consumers still not being ready for this transition, and yet
[3:40] Speaker 3: there is this sort of looming question over you know,
[3:43] Speaker 3: is the rest of the world going to make this
[3:47] Speaker 3: change more successfully and will they be left behind if
[3:50] Speaker 3: they don't figure this out eventually.
[3:52] Speaker 5: You just mentioned you moved back from London. I mean,
[3:54] Speaker 5: looking at the cars on the road, it must be
[3:56] Speaker 5: kind of a shock just to see the transition back
[3:59] Speaker 5: to gas guzzling SUVs everywhere.
[4:01] Speaker 3: I mean the vehicles here. You know, I grew up
[4:03] Speaker 3: in Michigan. I've been around these companies a long time.
[4:06] Speaker 3: Vehicles have always been much bigger here, but it is
[4:08] Speaker 3: a sort of shock to the system to see just
[4:10] Speaker 3: how big, even as someone who's covered this industry a
[4:13] Speaker 3: long time man, these pickups keep getting bigger, and I
[4:16] Speaker 3: think it is also amazing for people who you know,
[4:20] Speaker 3: go from here to London. What I hear from people
[4:24] Speaker 3: you know who do travel to Europe is man, look
[4:26] Speaker 3: at all of these Chinese evs, you know, clonging the
[4:29] Speaker 3: streets of Europe and around London.
[4:31] Speaker 2: No, it's us in the rest of the world. I
[4:33] Speaker 2: don't know how it's going to play out.
[4:35] Speaker 1: Stay with us.
[4:36] Speaker 5: More from Bloomberg Intelligence coming up after this.
[4:42] Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
[4:46] Speaker 1: weekdays at ten am Eastern on Applecarplay and Android Auto
[4:49] Speaker 1: with the Bloomberg Business App. Listen on demand wherever you
[4:53] Speaker 1: get your podcasts, or watch us live on YouTube.
[4:56] Speaker 2: Staying on the earnings beat Visa, our good friends at Visa.
[5:00] Speaker 2: They beat estimates, but they took a five hundred and
[5:02] Speaker 2: sixty three million dollar charge on job cuts. There, let's
[5:06] Speaker 2: get the latest on what's going on with Visa. Dickh Gara,
[5:09] Speaker 2: Bloomberg Intelligence, Global Fintech and Payments Alyst Joints is here.
[5:13] Speaker 2: So what's the takeaway from Visa from your perspective? Diction?
[5:17] Speaker 6: Yeah, Hi there, Nice to be here again. I think
[5:20] Speaker 6: it was a good set of numbers, modest beat on
[5:24] Speaker 6: both top line and bottom bottom line for the third quarter.
[5:27] Speaker 6: Physical third quarter for Visa adjusted EPs was about two
[5:31] Speaker 6: point seven percent ahead of estimates. But I think what
[5:34] Speaker 6: was really notable is all the underlying trends were pretty resilient.
[5:38] Speaker 6: So eighteen percent volume gains, thirty four percent services revenue gain,
[5:44] Speaker 6: I think, and all of that puts Visa in a
[5:46] Speaker 6: very comfortable spot to basically meet their raised fullier twenty
[5:51] Speaker 6: twenty six guidance, which they have raised to low end
[5:54] Speaker 6: of mid teens for EPs growth. I think what I'd
[5:58] Speaker 6: highlight is it really was firing on all finding all engines.
[6:02] Speaker 6: Value added services was three point eight billion dollars revenue
[6:06] Speaker 6: in third quarter, and Visa Direct, which is their consumer
[6:10] Speaker 6: direct point to point money flows, their transactions climb twenty
[6:16] Speaker 6: one percent, and new use cases and partnerships are kind
[6:19] Speaker 6: of keytail wins there. Sorry, one thing if pat remiss
[6:22] Speaker 6: to not point out is the World Cup.
[6:24] Speaker 4: It did.
[6:24] Speaker 6: It did really well for Visa's third quarter numbers, and
[6:29] Speaker 6: management cited very strong volume gains across all categories. So
[6:33] Speaker 6: all the US hosts cities, total card present spent accelerated
[6:37] Speaker 6: transactions were up twenty percent. You have to understand, like
[6:41] Speaker 6: when people are visiting and this is all cross border spend,
[6:45] Speaker 6: which is some of the most lucrative or higher margin
[6:47] Speaker 6: business for the card network, tap to pay transactions where
[6:51] Speaker 6: people are going and using transits, you just have your
[6:54] Speaker 6: card and move on your entertainment, your restaurants spend. All
[6:57] Speaker 6: of that got a nice Kicker, and the banks launched
[7:00] Speaker 6: a lot of programs along as well to kind of
[7:03] Speaker 6: bring in more consumers who are traveling for the World Cup.
[7:06] Speaker 5: Trisha, this is a dumb question, but are those buy now,
[7:09] Speaker 5: pay later companies like Karna competition for Visa? Are they
[7:13] Speaker 5: friends or foes?
[7:15] Speaker 6: So here's how I put it's called it. When I
[7:19] Speaker 6: was covering banks, I actually thought the card networks are
[7:22] Speaker 6: done with just because of all the alternative payment trails
[7:25] Speaker 6: that were coming. Direct fun and bank to bank transfers
[7:28] Speaker 6: were happening. And now BNPL is kind of growing. But
[7:31] Speaker 6: if you pay attention all the buy now, pay later
[7:34] Speaker 6: companies and I cover the sector, their best selling product
[7:37] Speaker 6: is actually a card. So the card networks have very
[7:42] Speaker 6: beautifully managed to embed themselves into the buy now, pay
[7:45] Speaker 6: later ecosystem as well. So while you go to an
[7:48] Speaker 6: Amazon dot com and spend on say Affirm, there a
[7:52] Speaker 6: firm is now giving you a card that you can
[7:55] Speaker 6: go and swipe at a restaurant for your buy now
[7:57] Speaker 6: pay LATA product.
[8:00] Speaker 2: So I'm looking at these stocks Diction, Visa, master Card, Affirm,
[8:04] Speaker 2: I mean, on a trailing twelveth basis, they're all kind
[8:07] Speaker 2: of flatish what's the story in the payment space here.
[8:12] Speaker 6: I think the sector overall is beaten down overall, and
[8:15] Speaker 6: I think if you just look at the card networks,
[8:18] Speaker 6: there somewhere in the middle of that range. The B
[8:21] Speaker 6: to B processors are the worst hit, but I think
[8:25] Speaker 6: there is the overall sector has kind of been doing
[8:29] Speaker 6: poorly in that regard. That said, Visa and MasterCard are
[8:33] Speaker 6: steady as they go, like, these are the most resilient,
[8:37] Speaker 6: solid cash flow businesses along the sector that I cover.
[8:42] Speaker 6: One thing part I would highlight though, and that we've
[8:44] Speaker 6: been getting a lot of questions around that is a
[8:46] Speaker 6: seven percent job cuts that Visa announced yesterday, and people
[8:50] Speaker 6: are like, is that a distress signal? Like, what's going on?
[8:54] Speaker 6: They're doing well, then why are they kind of letting
[8:56] Speaker 6: people go? I would highlight that that's not Visa in distress.
[9:01] Speaker 6: I would read it as modern corporate portfolio management. Visa's
[9:06] Speaker 6: portfolio of work was actually tripled over the last decade.
[9:10] Speaker 6: And what CEO Ryan mcinnonney is doing today, he's trilling
[9:13] Speaker 6: product overhead and monetizing their AI investments.
[9:18] Speaker 1: Stay with us.
[9:18] Speaker 5: More from Bloomberg Intelligence coming up after this.
[9:25] Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live
[9:29] Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android
[9:32] Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever
[9:35] Speaker 1: you get your podcasts, or watch us live on YouTube.
[9:39] Speaker 5: It's all about earnings, and I know that we've got
[9:41] Speaker 5: a whole stlew of big tech earnings today and tomorrow.
[9:44] Speaker 5: But over in Europe they're focusing on their leading industry,
[9:48] Speaker 5: which is luxury, and the luxury guys are kind of
[9:51] Speaker 5: going in different directions these days.
[9:53] Speaker 2: Hermes and the Gucci folks over there at Caring. I
[9:57] Speaker 2: don't think there's a read through there. I don't know.
[9:59] Speaker 5: Yeah, certainly says something about China. Certainly says something about inflation.
[10:02] Speaker 5: Let's bring in Andrew Felstad. She's our Bloomberg opinion columnist
[10:06] Speaker 5: rating on both. Andrew, just give us an overview. Here.
[10:10] Speaker 5: We had heard from LVMH. Now we're hearing from Amez
[10:13] Speaker 5: and Caring. And I think I mispronounce it Ramaz, because
[10:16] Speaker 5: that's how I how you go, not Hermes in.
[10:18] Speaker 2: Any cases, Federated Hermes in Pittsburgh.
[10:20] Speaker 5: Okay, thank you, This is a dumb American question. Anyway,
[10:23] Speaker 5: Andrea walk us through how the tide seems to be
[10:27] Speaker 5: turning here Formez and Caring, they're going in different directions
[10:31] Speaker 5: than they were before.
[10:33] Speaker 7: Absolutely, So Hamez seems to have spooted the market by
[10:38] Speaker 7: talking about China and saying that China has stabilized, but
[10:42] Speaker 7: it's not yet recovered. And I mean this this isn't
[10:46] Speaker 7: really that different from what everyone else has been saying.
[10:50] Speaker 7: But he taught the CEO Axel Duma, talked about the
[10:54] Speaker 7: pork price and he said that obviously we know about
[10:57] Speaker 7: the property market, but he said, the pork price is low,
[11:01] Speaker 7: and so that's an indication of less confidence. So the
[11:04] Speaker 7: market's really taken this badly and worried about Hermez. Now
[11:09] Speaker 7: at the same time, on the backdrop of Hermez, you've
[11:12] Speaker 7: also just had this sense that the Burke in the
[11:16] Speaker 7: Kelly aren't quite as hot as they used to be.
[11:20] Speaker 7: Chanelle has gone a new design and he's been bringing
[11:23] Speaker 7: out some bags that are really really in demand. So
[11:27] Speaker 7: the Hermes and the Burking and the Kelly, typically you
[11:32] Speaker 7: can't you can't just go into a store and buy one.
[11:35] Speaker 7: You have to put your name in a weight list,
[11:37] Speaker 7: all sort of you know, hurdles that you get one
[11:40] Speaker 7: or not, and so most people buy them in the
[11:42] Speaker 7: secondary market where they cost more, and the premium to
[11:46] Speaker 7: the retail price has been falling. So that's scene as
[11:50] Speaker 7: a maybe not not a great thing for Hermez. But
[11:52] Speaker 7: the what's the other thing that's happened in the last
[11:55] Speaker 7: few weeks is that all the footballers have been carrying
[11:59] Speaker 7: these you know, giant Hermes bag, the giant Burking's the
[12:05] Speaker 7: hack which isn't a Burken but looks like a b
[12:08] Speaker 7: looks very much like a Burkan, And I really do
[12:11] Speaker 7: think that's actually given home as a new lease of life,
[12:14] Speaker 7: because you know, the Berkan was looking a bit tired
[12:17] Speaker 7: and suddenly you've got Earling Harland carrying his giant Hermies
[12:21] Speaker 7: bag and I think it has helped them. But obviously
[12:24] Speaker 7: that's not going to come through in these numbers.
[12:28] Speaker 2: Andrew, just so you know, in this radio studio, we
[12:31] Speaker 2: are not buying that pork as a leading indicator issue. Okay,
[12:35] Speaker 2: we just not buying it, but it Andrew, what do
[12:40] Speaker 2: we know about the geographic element? Here are certain parts
[12:44] Speaker 2: of the world doing better than than others.
[12:46] Speaker 7: Absolutely, the US is really really on fire when it
[12:50] Speaker 7: comes to luxury the stock market wealth up to now. Anyway,
[12:55] Speaker 7: the AI wealth that the US demand is very correlated
[13:00] Speaker 7: with a stock market performance. Now, what is really interesting
[13:05] Speaker 7: is that the people that are you know, enjoying all
[13:08] Speaker 7: this wealth, and it's natural when you get a big windfull,
[13:11] Speaker 7: you want to treat yourself, and that seems to favor
[13:15] Speaker 7: like watches and jewelry rather than a handbag. Maybe you
[13:18] Speaker 7: want something that lasts, you want a memento of this,
[13:21] Speaker 7: you know, of this wonderful windfall. It's really helping jewelry
[13:25] Speaker 7: rather than leather goods. And that's a problem because obviously
[13:29] Speaker 7: for brands like Lvia Mahe Carrying, although although Elva Mate
[13:33] Speaker 7: has Tiffany and it really you know, it's bread and
[13:37] Speaker 7: butter is leather goods, so and they're very profitable. So
[13:41] Speaker 7: you really want handbags to come back. But the fact
[13:43] Speaker 7: that the US is doing well that's making up the
[13:46] Speaker 7: short fall wild China sort of in the dol drums.
[13:51] Speaker 1: Stay with us. More from Bloomberg Intelligence coming up after this.
[13:58] Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
[14:01] Speaker 1: weekdays at ten am Eastern on Applecarclay and Android Auto
[14:05] Speaker 1: with the Bloomberg Business app. Listen on demand wherever you
[14:08] Speaker 1: get your podcasts, or watch us live on YouTube.
[14:12] Speaker 2: Okay, the World Cup is over. I think it was
[14:14] Speaker 2: a fantastic World Cup. I think everybody was generally pretty happy.
[14:18] Speaker 2: The fans seemed to be happy. The games were good,
[14:20] Speaker 2: we had a great finals there, I thought, I don't know.
[14:24] Speaker 2: I think it's important for a lot of companies out there,
[14:27] Speaker 2: none more important than Nike and Adidas. And let's break
[14:31] Speaker 2: that down. Putnam Goyle, senior US e Commerce and retail
[14:34] Speaker 2: analyst for a Bloomberg Intelligence put them just kind of
[14:38] Speaker 2: kind of scope out for us. For the big name
[14:41] Speaker 2: brands that were really associated with this. Nike and Audi
[14:44] Speaker 2: dosk talk to us with what it means for them.
[14:47] Speaker 4: Yeah, So for both of them, the World Cup is
[14:49] Speaker 4: a real big deal because it allows them to come
[14:52] Speaker 4: front and center with their fans and consumers alike. So
[14:55] Speaker 4: when you think about who has the ball, who has
[14:58] Speaker 4: the kids, who has the teams and ma So when
[15:01] Speaker 4: we got to the finals, Adidas had the win already,
[15:03] Speaker 4: right because both teams were sponsored or wearing Adida skiar.
[15:07] Speaker 4: So at the end of it, who won the World Cup?
[15:10] Speaker 4: It's Adidas of the at leisure names and that's great
[15:12] Speaker 4: brand heat for them. In fact, they came out saying
[15:16] Speaker 4: that they had expected in euros a billion from the
[15:20] Speaker 4: World Cup kit sales and jerseys, et cetera, and they
[15:24] Speaker 4: topped that by fifty percent. So one point five billion
[15:26] Speaker 4: euros is what now the number is for the momentum
[15:30] Speaker 4: they got from the World Cup, unjust kits and jerseys
[15:33] Speaker 4: and gear ahead of it.
[15:35] Speaker 2: Yeah, I mean, you know, we had so many games
[15:37] Speaker 2: here in the New York metro area that all throughout
[15:40] Speaker 2: the city, throughout the tournament here, there were jerseys all
[15:43] Speaker 2: over the place and people were really into it.
[15:45] Speaker 4: So do these.
[15:46] Speaker 2: Companies did they break out how big soccer is for
[15:49] Speaker 2: them amongst all their the sports that they were involved
[15:52] Speaker 2: with that.
[15:53] Speaker 4: You know, I wish I did, but or they did,
[15:55] Speaker 4: but they don't, And we don't know by sport how
[15:59] Speaker 4: big it is. Just as you can imagine, you know,
[16:01] Speaker 4: when you think about the world of sports, soccer is
[16:04] Speaker 4: one of the largest watched and played sports in the world.
[16:07] Speaker 4: So it definitely does build momentum in terms of their sales,
[16:10] Speaker 4: whether it's the cleats, whether it's the apparel, the jerseys,
[16:13] Speaker 4: et cetera. The players, they sponsor matter. You know, Messi
[16:17] Speaker 4: being in the game for Adidas was a big deal.
[16:19] Speaker 4: In Bappe Ford Nike in the top five running was
[16:23] Speaker 4: a big deal. And these players also against the teams
[16:26] Speaker 4: that they sponsor, really do raise those ability for them
[16:29] Speaker 4: and get to draw traffic into their stores and their brands.
[16:32] Speaker 2: We have a sense of like, if Adidas wants to
[16:35] Speaker 2: sponsor you know, Spain or in Argentina, what that costs them?
[16:39] Speaker 2: Do we know that that kind of number.
[16:41] Speaker 4: So those contracts vary and they change, and clearly you
[16:44] Speaker 4: know it's pain having won the World's Cup, the price
[16:47] Speaker 4: tag goes up once the contracts are up for renewal.
[16:50] Speaker 4: Right now, what I can tell you is a soccer
[16:52] Speaker 4: ball which Adidas has owned in the World Cup for
[16:54] Speaker 4: the last I believe twenty five years, is now being
[16:59] Speaker 4: likely taken over by Nike in twenty twenty seven, twenty
[17:02] Speaker 4: twenty eight. So it does. So things do change when
[17:05] Speaker 4: contracts expire. But for many of the teams, for many
[17:07] Speaker 4: of the players, they do have various lengths of contracts
[17:11] Speaker 4: and prices do vary.
[17:13] Speaker 2: How about for Nike, an American company, how did they
[17:16] Speaker 2: fare in a world of global football?
[17:20] Speaker 4: It would have been nice to see Nike versus Adidas
[17:22] Speaker 4: in the final, I must say, but that wasn't the case.
[17:25] Speaker 4: They still did well, they were up in third place,
[17:28] Speaker 4: so I think they do still gain the brand visibility.
[17:31] Speaker 4: In fact, you know some data sources that we look at,
[17:34] Speaker 4: Nike was the top searched kit through April through June
[17:38] Speaker 4: with the USA averaging more than fourteen thousand weekly searches.
[17:43] Speaker 4: So we do think that even though Nike didn't win
[17:45] Speaker 4: the World Cup, they were definitely in the running and
[17:50] Speaker 4: they were very visible across the board, and having Imbappe
[17:54] Speaker 4: and winning third fourth place does still go a long
[17:56] Speaker 4: way for them.
[17:58] Speaker 2: How about for a brand like Puma, it feels like
[18:00] Speaker 2: they've kind of, at least here in the United States
[18:04] Speaker 2: a little bit of a lagging behind. Say that the
[18:06] Speaker 2: Nikes and the Adidas of the world talk was about Puma.
[18:10] Speaker 4: Yeah, so Puma, you know, they're definitely much smaller right
[18:13] Speaker 4: when you think about them in the world of sports,
[18:15] Speaker 4: and I think they didn't have as many teams as
[18:18] Speaker 4: Nike and Adidas have, so they do lag in that front.
[18:21] Speaker 4: But I think what worked out well for them on
[18:23] Speaker 4: the World Cup was Morocco and Switzerland's quarterfinals, right. I
[18:26] Speaker 4: think that really helped them gain visibility and it did
[18:30] Speaker 4: prove positive for them. They're undermissed a big turnaround right
[18:34] Speaker 4: now with the brand, and they're really trying to find
[18:36] Speaker 4: their place. Where does Puma set relative to Aditas and Nike,
[18:39] Speaker 4: And I think where they win is in the smaller
[18:42] Speaker 4: sports that Adidas and Nike play in but aren't as aggressive.
[18:45] Speaker 4: And if you think about cricket, if you think about
[18:47] Speaker 4: the f one, right, those are sports where I think
[18:50] Speaker 4: Puma has a larger leg up than Nike and Adidas,
[18:54] Speaker 4: but they're smaller.
[18:55] Speaker 2: In these companies, they're not just sneaker companies. It's a
[18:57] Speaker 2: whole ath leisure thing, right. I Mean that's kind of
[18:59] Speaker 2: where the market is now defined or how the market's defined.
[19:03] Speaker 4: They're not sneaker companies. When you think about Adidas and
[19:07] Speaker 4: Nike Alike, you know, yes, sneakers are where they probably
[19:11] Speaker 4: get most of their visibility and their player lineups from.
[19:15] Speaker 4: But apparel is an important piece of the business. It's growing.
[19:18] Speaker 4: But when you think about Nike and Adidas, Nike wins
[19:21] Speaker 4: in the footwear race. Right. Nike's shares over twenty percent
[19:24] Speaker 4: of the global footwear market, Adidas is around twelve percent,
[19:27] Speaker 4: so almost double. But when you look at apparel, they're
[19:30] Speaker 4: very comparable. Nikes about ten percent, Adidas about nine percent.
[19:33] Speaker 4: So apparel is the opportunity for both of them to
[19:36] Speaker 4: step up and really gain margin.
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