Adding Crown Capital: Sports apparel companies seem vulnerable to surges in oil prices

Analysts at RBC Capital Markets wrote in a report that, compared to other clothing and fashion industries, sports companies seem to have a greater exposure to the risk of high oil prices. Compared to luxury fashion items, the investment cost of sports clothing has a relatively higher exposure to oil, higher shipping costs, and lower profit margins. The Canadian bank stated that this potential impact on the financial performance of sports brands Nike, as well as German companies Adidas and Puma, is "extremely negative." As negotiations between the US and Iran remain deadlocked and the vital Strait of Hormuz remains closed, crude oil futures prices continued to rise on Friday, breaking through $100 per barrel.