Tanger says World Cup tourism lifted traffic and sales this summer

Tanger World Cup traffic rose in June and July as international and domestic visitors traveled for the tournament, according to CEO Stephen Yalof. For investors following the outlet-center operator, the key limitation is that Tanger did not disclose how much of its sales growth came specifically from the event.

Yalof told CNBC that the company also recorded higher sales over the summer and that athletic brands performed well amid World Cup-related activity. He said Tanger has shopping centers in eight of the tournament's 11 host cities.

“Traffic drives sales,” Yalof said, adding that sales were up about 5% for the year. That figure is a year-to-date measure, rather than a disclosed estimate of the World Cup's contribution.

How did the World Cup affect Tanger traffic?

Yalof attributed the increase to tourism around the matches, saying the tournament brought both international and U.S. visitors to markets where Tanger operates. His comments are a management assessment of what drove the summer increase, not an independently measured, World Cup-only result.

Tanger's centers offer outlet stores alongside restaurants and entertainment, which Yalof said helped visitors combine shopping, dining and other activities in one stop. He said the company viewed the influx as an opportunity to introduce travelers to Tanger and its retailers, with the aim of encouraging future visits and recommendations.

Yalof said some overseas visitors sought what he described as an American experience, including U.S. restaurant chains, music and well-known brands. He pointed to outlet shopping as a way for travelers to buy brands such as Polo, Michael Kors, Kate Spade, Coach and Nike at discounted prices.

What else did Tanger say was driving visits?

The World Cup was not the only factor Yalof cited. He said domestic travel also increased as more Americans chose to travel within the country, referring to rising oil prices and the geopolitical environment.

On a call with analysts, Yalof also said stronger moviegoing and box-office activity had helped bring people to Tanger centers. In his account, some visitors arrived early to shop and stayed afterward to eat, creating more reasons to spend time at the properties.

Tanger had separately reported strong second-quarter results and cited marketing and traffic-driving initiatives across its portfolio, CNBC reported. The available information does not provide a separate traffic percentage, sales amount or city-by-city breakdown tied to World Cup tourism.

For shareholders, the comments offer context for Tanger's reported sales momentum, while leaving the scale and durability of the tournament-related benefit unclear.

This story draws on original reporting from CNBC.