Core Insights - adidas AG (ADDYY) reported strong preliminary results for Q4 2024, with currency-neutral revenues increasing by 19% and 24% in euro terms [1] - The company achieved a gross margin of 49.8%, up 5.2 percentage points, and an operating profit of €57 million [1] - For the full year 2024, revenues on a currency-neutral basis rose by 12%, with a gross margin of 50.8% and operating profit exceeding €1 billion, reaching €1,337 million [2] Group 1: Financial Performance - In Q4 2024, excluding Yeezy, revenues on a currency-neutral basis increased by 18% year over year [1] - The gross margin for 2024 improved by 3.3 percentage points compared to the previous year [2] - The operating profit for 2024 saw a significant increase of more than €1 billion compared to the previous year [2] Group 2: Management Outlook - Management expressed satisfaction with the progress made in Q4 and throughout 2024, highlighting robust growth across all regions and divisions [3] - The company remains optimistic about future growth, aiming for double-digit growth with the adidas brand and a 10% margin target [4] - Final financial results for 2024 and the outlook for 2025 are expected to be released on March 5, 2025 [4] Group 3: Market Position and Strategy - adidas has maintained a strong presence in the U.S. sports apparel market, driven by its brand image and strategic growth efforts [5] - The direct-to-consumer (DTC) business has performed well, with retail stores benefiting from strong sell-out rates [6] - The company is focusing on reducing discounting activities while enhancing its online business mix, supported by innovation efforts [6] Group 4: Stock Performance - Shares of adidas have increased by 26.4%, outperforming the industry average decline of 2.6% [6]

Core Insights - Adidas plans to cut up to 500 jobs, representing nearly 9% of its 5,800 employees at its Herzogenaurach headquarters, to simplify its business operations [1][2] - The layoffs were announced shortly after Adidas reported better-than-expected preliminary profit results for the holiday quarter, with a 19% sales growth and projected sales of 5.97 billion euros, surpassing analyst expectations of 5.68 billion euros [2] - The company aims to align its operating model with current business realities, indicating that the layoffs are not part of a cost-cutting program but rather a response to changes in the business environment over the past few years [3] Business Performance - Adidas has been restructuring its operations and ended 2024 with sales and profits exceeding both analyst and company expectations [4] - The company has successfully leveraged its classic Samba and Gazelle styles to boost sales, benefiting from a slowdown at its main competitor, Nike [4]

Core Viewpoint - As of early 2025, Nike shares are near 52-week lows while Adidas stock is close to its highs, prompting a comparison of investment potential between the two companies [1] Group 1: Company Performance - Nike is facing challenges due to a need to revamp its product line and increased competition from brands like Under Armour and New Balance, leading to slower sales growth and inventory issues [3] - Adidas has capitalized on Nike's downturn by expanding its product offerings, resulting in improved financial metrics and positive market sentiment [4] Group 2: Financial Outlook - Nike's total sales are projected to decline by 10% in fiscal 2025 to $46.34 billion, down from $51.36 billion in the previous year, with a slight recovery expected in fiscal 2026 [5] - Nike's annual earnings are expected to drop 47% to $2.10 per share in fiscal 2025, compared to $3.95 in 2024, although a rebound to $2.36 is projected for fiscal 2026 [6] - Adidas is expected to see a 6% increase in total sales for FY24, with a further 10% growth projected for FY25, reaching $27.3 billion, and annual earnings forecasted to rise to $2.15 per share from a loss of -$0.36 in FY23 [8] Group 3: Valuation Metrics - Nike is trading at $71 per share with a forward earnings multiple of 34.3X, while Adidas is priced at $125 with a multiple of 30.9X, both above the S&P 500 average of 22.1X [9] - In terms of price to sales, Adidas is more attractive at under 2X, while Nike stands at 2.3X [10] Group 4: Dividend Comparison - Nike offers a 2.22% annual dividend yield, significantly higher than Adidas's 0.19% and the industry average of 1.92% [12] Group 5: Investment Sentiment - Adidas currently holds a Zacks Rank 3 (Hold), while Nike is rated Zacks Rank 5 (Strong Sell), indicating a more favorable outlook for Adidas despite Nike's appeal to income investors [14]

Core Viewpoint - The analysis presents a neutral stance on Adidas, acknowledging the potential for growth in the low-teens percentage range, but also highlighting a history of the company missing guidance [1]. Summary by Relevant Sections - **Growth Potential**: Adidas has the potential to accelerate growth to low-teens percentages based on multiple data points and indicators [1]. - **Historical Performance**: The company has a track record of missing guidance, which raises concerns about its ability to meet future growth expectations [1]. - **Investment Philosophy**: The investment approach discussed emphasizes value investing principles and a focus on long-term growth, suggesting a strategy of buying quality companies at a discount to their intrinsic value [1].

Financial Data and Key Metrics - Currency-neutral growth of 10.3% in Q3 2024, with underlying adidas business (excluding YEEZY) growing 14% [7] - Gross margin reached 51.3%, the first time adidas business margin exceeded YEEZY [7] - EBIT increased by almost 50% to €598 million, with an EBIT margin of 9.3% [7] - Net income of €469 million, with basic earnings per share of €2.44, up 75% [49] Business Line Data and Key Metrics - Footwear grew by 14%, Apparel by 5%, and Accessories by double digits [20] - Performance products grew by 10%, Sportswear by 4%, and Original basketball partnerships and skateboarding by 20% [21] - Wholesale business grew by 13%, Own Retail by 15%, and E-commerce (excluding YEEZY) by 25% [12][13] Market Data and Key Metrics - North America showed slight growth in the adidas business, with optimistic outlook for Q4 and Q1 [8] - Europe grew by 18% (21% underlying), China by 8%, Japan and South Korea by 17%, and LatAm by 30% [9][10] - Emerging markets grew by 20%, contributing to the overall 10% growth [10] Company Strategy and Industry Competition - The company continues to invest heavily in sales and marketing, with a focus on leveraging future growth [7] - Expansion into new markets such as Iraq, Bangladesh, Uzbekistan, and Nigeria through franchise partners [19] - Focus on localizing products and marketing to cater to regional differences [57] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth and a 10% EBIT margin in the medium term [66] - The company aims to be a "good company" in 2024 and a "healthy company" by 2026, with a focus on gross margin between 50%-52% and 12% investment in marketing [58] - The summer of sports events positively impacted growth, fueling momentum into Q3 [6] Other Important Information - The company settled YEEZY-related claims, resulting in a €100 million release in other operating income, offset by a €100 million donation [45] - Inventory levels are healthy, with 80% of inventory being current or future season products [90] - The company plans to open new stores in smaller Chinese cities and expand into new markets with franchise partners [18][19] Q&A Session Summary Question: Ability to maintain current top-line growth - The company expects to maintain double-digit growth in the future, with differences across categories, channels, and markets [66] Question: Impact of expanding SKU counts on profitability - Expanding SKU counts is expected to positively impact profitability, with a focus on having the right products for each market [67][70] Question: Drivers of North America growth - Growth in North America is driven by improved brand heat and positive retailer order books, with a focus on performance and lifestyle products [73] Question: OpEx and restructuring costs - The company incurred one-time costs related to Runtastic and IT infrastructure impairments, with ongoing efforts to optimize operating expenses [75] Question: EBIT guidance and CapEx - The company expects to spend less than the guided €600 million in CapEx for the year, with a focus on disciplined investment [78] Question: Share buyback and cash generation - The company prioritizes investing in the business and being a solid dividend payer, with potential for share buybacks in 2026 [85][86] Question: Inventory management and specialty running progress - The company has managed inventory effectively, with no issues expected in fulfilling Q4 demand [88] - Progress in specialty running is improving, with efforts to rebuild relationships with specialty retailers [88] Question: Full price sell-through and business model changes - The company sees potential for higher gross margins in 2025, with ongoing optimization of the business model [97] Question: Current trading and tariff trends - October trading is positive, with no significant changes in demand or promotional activity [100] - Tariff trends are strong but represent a balanced portion of overall sales, with growth across all categories [100]

Adidas has reached an out-of-court settlement with rapper Ye to end all legal proceedings between them, the sportswear brand said on Tuesday, adding that no money changed hands in the agreement. Adidas and Ye had been embroiled in multiple lawsuits for the past two years, since the German company ended a partnership with the rapper previously known as Kanye West over antisemitic comments he made. "There isn't any more open issues, and there is no… money going either way, and we both move on," CEO Bjorn Guld ...

本文为IPO早知道原创 作者｜Stone Jin 微信公众号｜ipozaozhidao 据IPO早知道消息，阿迪达斯于10月29日发布了2024年第三季度财报。 财报显示，今年第三季度，阿迪达斯全球营收64.38亿欧元，在货币中性下（下同）较上年同期增长 10%，若剔除Yeezy影响，则同比增长14%；营业利润5.98亿欧元，较上年同期增长46.0%。 其中，作为最为重要的战略市场之一， 阿迪达斯大中华区业绩稳中有进，连续六个季度实现"有质量 的增长"。今年第三季度，大中华区营收9.46亿欧元，同比增长9% 。 全市场、全渠道、全品类均实现增长。 本文由公众号IPO早知道（ID：ipozaozhidao）原创撰写，如需转载请联系C叔↓↓↓ 同时，阿迪达斯基础毛利率和库存也在持续改善——今年第三季度，阿迪达斯毛利率51.3%，较上 年同期提升2.0个百分点；截至2024年9月30日，库存较上年同期减少7%，这些都为阿迪达斯未来 业绩稳健增长奠定了坚实的基础。 阿迪达斯全球CEO古尔登表示，"对我们而言，第三季度的增长非常强劲，再次好于预期。尤为值得 一提的是，第三季度阿迪达斯在全市场、全渠道、全品类均实现了增长 ...

The Zacks Shoes and Retail Apparel industry continues to face challenges from rising costs, lower consumer spending on discretionary items, and increased marketing investments, which have weighed on profits. Additionally, unfavorable currency fluctuations pose risks for companies with global operations. However, the industry has been promising due to growing consumer interest in healthy lifestyles, driving demand for activewear and athletic footwear. Innovative designs have been key growth drivers for indus ...

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For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Adidas AG (ADDYY) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question. Adidas AG is one of 273 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #8 within the Zacks Sector Ran ...