The annual Wimbledon tennis tournament is now underway and runs through July 14. One of the biggest sporting events in the world and the most prestigious of tennis’ four grand slam events, Wimbledon attracts a global audience of more than 50 million people. American tennis great John McEnroe, who won three singles titles and five doubles titles at the event has said: “There’s a certain beauty and majesty to Wimbledon.”
There’s also a lot of money spent. In 2023, 54 million people watched and streamed the tournament and another 532,651 attended in-person. This generated a record revenue of £350.1 million (US$442.6 million), and a record operating profit of £81.2 million (US$102.6 million). Leading brands and companies from around the world line-up to sponsor partner with Wimbledon.
Here is game, set, match: three stocks to buy, as they could see a Wimbledon boost.
Amer Sports (AS)
Amer Sports (NYSE:AS) held its initial public offering in New York in January of this year. The Helsinki, Finland-based company has been a going concern since 1950 and went public at a valuation of $8.7 billion. Since its market debut, AS stock has traded sideways and is down 3% on the year. However, if there’s a sporting event that could drive Amer Sports share price higher, it is Wimbledon.
That’s because Amer Sports main product is Wilson tennis rackets. Its main endorsement deal is with tennis legend and 20-time grand slam champion Roger Federer. Look for heavy advertising of Amer Sports’ tennis rackets during the British tournament. In addition to its tennis rackets, Amer also makes Arc’teryx running shoes and Atomic skis. But the company is most closely associated with Wilson-branded tennis rackets.
Barclays (BCS)
The biggest sponsor of Wimbledon is British bank Barclays (NYSE:BCS). While the lender has never disclosed the value of its sponsorship, it has been reported as £20 million (US$25 million) annually. Barclays is the official bank of the Wimbledon tournament and this year became the tournament’s official Parks and Participation Partner. Like Amer Sports, Barclays heavily advertises and promotes its sponsorship of Wimbledon as the grand slam event is broadcast worldwide.
As with Amer Sports, Barclays and its stock could use a lift from Wimbledon. The British lender is in the midst of a strategic operational overhaul after reporting a net loss of £111 million (US$14o million) at the end of last year. The operational overhaul includes cost cuts, asset sales and a reorganization of its business divisions. Going forward, the bank will be divided into five operating divisions, separating the corporate and investment banking sides.
BCS stock is up over 35% this year but has only gained 40% over the last five years.
Ralph Lauren (RL)
Like Barclays, clothing retailer Ralph Lauren (NYSE:RL) has been a major long-term partner of the Wimbledon tennis tournament. The company has designed the outfits worn by Wimbledon’s on-court officials since 2006. Additionally, Ralph Lauren launches an exclusively designed Wimbledon clothing collection each summer and operates a flagship store within the Wimbledon Village at the All England Lawn Tennis Club.
This is all to say that Ralph Lauren gets great exposure during Wimbledon. The company’s association with tennis makes sense given the sport’s wealthy atmosphere and reputation for preppy attire. Ralph Lauren this summer is set to get more attention than usual from its ties to sports as it is also designing Team USA’s uniforms for the upcoming Summer Olympics being held in Paris, France July 26 to August 11. RL stock has been on an upswing lately, having gained over 40% over the last 12 months.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
