It will not come as a surprise to anyone that Australia is a nation obsessed by sport. This is especially true in 2015 as we play host to football's Asian Cup and the Cricket World Cup as well as summer staples like the Australian Open Grand Slam and the global PGA Golf Tour.
With these events comes a renewed interest in outdoor activities of all kinds, in particular, those sports represented in the busy schedule. Here are three stocks poised to benefit.
- Super Retail Group Ltd (ASX: SUL)
When it comes to buying sporting goods in Australia, the largest and most diversified option is the Super Retail Group house of brands. The company was already established in the leisure, outdoor and automotive markets through market leading brands Supercheap Auto, Ray's Outdoors and BCF. It expanded laterally into sporting goods through the acquisition of the Rebel Sport chain to sit alongside the Amart Sports chain.
The company is the leader in the market for sporting goods from golf clubs to rugby boots, and has invested strongly in its online offering. It is investigating cutting costs and therefore retail prices by sourcing products directly from overseas factories. It is also well placed to capitalise on the craze for wearable fitness trackers and activity bands.
- Woolworths Limited (ASX: WOW)
It may not seem like an obvious choice to service the demand for sports but stick with me. Watching sporting events from home is often a social occasion, and with this comes the need for food and drink.
Via an extensive supermarket network, Woolworths serves this need as a source of chips, dip and steaks close to most homes. In addition, the market leading Dan Murphy's brand and its 188 stores directly caters for the need for refreshment created by thirsty spectators.
And for those occasions when fans venture out of the house to watch their sport of choice, it is worth remembering that Woolworths is also one of the largest owners of pubs, hotels and poker machines in the country.
- Catapult Group International Ltd (ASX: CAT)
Given we are one of the most heavily populated sports markets in the world, it's no surprise we have also produced firms that service elite teams and athletes.
Catapult Group International is one such company, specialising in making GPS trackers that athletes wear during training and matches, which provide data to coaching staff to manage performance and injury.
The stock has attracted U.S. billionaire Mark Cuban to the shareholder register, and is actively pursuing the enormous U.S. college and professional sports market after buying a key Australian rival. It has a "blue chip" list of existing clients that includes teams like the Brisbane Broncos, Collingwood Magpies and AC Milan along with a host of NFL and NBA teams.
Foolish takeaway
While economic factors and consumer sentiment both affect discretionary spending, it cannot be denied that Australia is a nation of sporting fanatics who will watch and participate in sport no matter what. Super Retail Group, Woolworths and Catapult Group International are all stocks that are strongly leveraged to a bumper year of international and domestic sporting events.
