Nike Investors Find Gold During Olympic Games: Chart of the Day

By Mark Clothier and Rodney Yap

Aug. 8 (Bloomberg) -- One of the favorites at the Beijing Olympics may be shares of Nike Inc.

The CHART OF THE DAY shows the world's biggest maker of athletic shoes rose in New York Stock Exchange trading during each of the six Summer Games going back to 1984, gaining an average of 8.7 percent in the two-week period from the opening to the closing ceremonies. The Beijing Olympics open today and run through Aug. 24.

Nike said it created new products for all 28 Summer Games sports for the first time. Sales in China surged in the fourth quarter as consumers bought more shoes and athletic gear ahead of the Olympics. The company boosted spending on promotions and marketing by 15 percent in the year that ended May 31, with most going toward the Beijing Games.

``I'm sure there is anticipation of the follow-on effect of being associated with the Olympics and athletes who win medals, inspiring non-athletes to purchase their equipment,'' said Jon Fisher, who helps oversee $1.7 billion in assets as a portfolio manager at Fifth Third Asset Management in Minneapolis. The firm holds Nike shares.

Nike's biggest Olympic boost took place in two weeks of events at Los Angeles in 1984, when the shares rose 19 percent. That was followed by a 9 percent increase at the Athens Games in 2004 and a 7.6 percent gain at the Atlanta Games in 1996.

The Seoul Games in 1988 had the slowest share growth for Nike at 4 percent.

In each two-week Olympic period, Nike outperformed the Standard & Poor's 500 Index, which also showed the biggest growth in 1984.

To contact the reporter on this story: Mark Clothier in Atlanta at mclothier@bloomberg.net; Rodney Yap in Los Angeles at Ryap@bloomberg.net.