Core Insights - adidas has raised its full-year 2025 guidance, now forecasting an operating profit of €2bn ($2.32bn), up from the previous guidance of €1.7bn to €1.8bn, following strong growth across various regions and product categories in Q3 [1] Financial Performance - Q3 revenue increased to €6.63bn from €6.44bn year-on-year, despite a negative translation effect of over €300m due to a stronger euro [2] - Operating profit rose 23% year-on-year to €736m, with an operating margin improvement of 1.8 percentage points to 11.1% [3] - Net income for Q3 reached €485m, with growth in both footwear (11% increase) and apparel (16% increase) [3] Segment Performance - Performance segment revenue grew 17%, driven by over 30% growth in running and double-digit gains in football, while lifestyle revenue increased by 10% [4] - Currency-neutral net sales for the adidas brand rose 12% in Europe, with strong growth in both wholesale and direct-to-consumer (DTC) channels [4] Regional Growth - Revenue growth was observed in Greater China (+10%), emerging markets (+13%), Latin America (+21%), and Japan/South Korea (+11%), with strong DTC momentum across all regions [5] - In North America, brand revenue grew 8%, with double-digit increases in footwear and apparel, although accessories saw a decline [5] Sales Channels - Own retail sales increased by 13%, supported by like-for-like gains and ongoing store investments, while e-commerce advanced 15% [6] - The DTC business for the brand rose by 14% in Q3, building on previous growth [6] Leadership Commentary - adidas CEO Bjørn Gulden expressed pride in the record revenues achieved in Q3, highlighting a 12% growth for the adidas brand, leading to total revenue of €6.63bn, marking the highest quarterly revenue in the company's history [7]

Core Insights - Adidas reported record third-quarter revenue of €6.6 billion, marking a 12% year-over-year increase in constant currency, excluding Yeezy factors [1] - The company's operating profit reached €736 million, a 23% increase compared to the previous year, with a gross margin improvement of 0.5 percentage points to 51.8% [1] - The Greater China region achieved revenue of €947 million, reflecting a 10% year-over-year growth, contributing to a consistent quality growth over ten quarters [1] Revenue Breakdown - Footwear revenue grew by 11%, with running category sales, particularly the ADIZERO 0 series, increasing by over 30% [1] - Apparel revenue saw a 16% increase, while accessories revenue grew by 1% [1] - For the first three quarters of the year, global revenue reached €18.735 billion, a 14% increase, with Greater China contributing €2.774 billion, up 12% year-over-year [1] Strategic Focus - The CEO emphasized the importance of being a globally successful brand with local insights, which is seen as a core driver of the company's strong performance [2] - Adidas aims to transition smoothly into 2026, anticipating another exciting year for sports [2] - Based on the strong third-quarter results, Adidas raised its full-year guidance for 2025, expecting double-digit growth and an operating profit increase to €2 billion, up from the previous estimate of €1.7 to €1.8 billion [2]

Core Insights - Adidas reported record-breaking third-quarter revenue of €6.63 billion, a 12% year-on-year increase, marking the highest quarterly revenue in its 76-year history [1] - Operating profit surged by 23% to €736 million, with a gross margin improvement to 51.8% [1] - The performance was achieved without the Yeezy line, indicating a new growth phase for Adidas post-Kanye West [1] Revenue Growth - The CEO highlighted a 12% currency-neutral growth (excluding Yeezy), the strongest quarterly performance in Adidas' history [4] - The footwear segment saw an 11% revenue increase, with strong growth in performance and lifestyle products [4] Product Performance - The performance segment's revenue grew by 17% at constant exchange rates, with running business growth exceeding 30%, driven by the success of the Adizero series [6] - The Samba series remains popular on social media, with some colorways in high demand, while the Terrace and Low Profile series also show strong performance [6] Market Expansion - In Greater China, Adidas achieved revenue of €947 million in Q3, a 10% year-on-year increase, reinforcing its localized strategy [8] - The company has implemented channel reforms and embraced direct-to-consumer (DTC) strategies while maintaining relationships with key wholesalers [8] Future Outlook - Adidas plans to focus on the sports year of 2026, which includes the Winter Olympics and World Cup, enhancing its "sport + streetwear" positioning [10] - The company expects full-year operating profit to reach approximately €2 billion, with double-digit revenue growth at constant exchange rates [10]

Core Viewpoint - Lululemon Athletica has experienced a significant decline in market capitalization and stock performance, but there are expectations for a turnaround driven by strategic initiatives and growth in international markets [1][2][3][4]. Company Performance - Lululemon's market cap has dropped to approximately $21 billion, while Adidas has a market cap of about $38 billion, marking a reversal from earlier periods when Lululemon was valued at twice that of Adidas [3][4]. - The company's stock has seen a 53% decline year-to-date, placing it at the bottom of the Consumer Discretionary Select Sector SPDR Fund and near the bottom of the S&P 500 [2]. Strategic Initiatives - Lululemon is focusing on a three-fold acceleration in new product design, development, and production, aiming to increase the percentage of new styles in its overall assortment from 23% to approximately 35% by next spring [8]. - Management has expressed disappointment with U.S. sales performance and is counting on a quicker product development cycle to reignite demand in this key market [8]. International Growth - Lululemon's revenues in China, its second-largest market, increased by 25% year-over-year in Q2, while the rest of its international portfolio saw a 19% rise in sales [9]. - Analysts project Lululemon's full-year revenue will grow from $10.98 billion in fiscal 2025 to $15.62 billion by 2030 [9]. Financial Projections - Adjusted earnings per share are expected to rise from $12.99 to $25.65 over the same period [10]. - Lululemon currently trades at a forward price-to-earnings (PE) ratio of 14 and a price-to-sales ratio of 2, both below their five-year averages [10]. - Long-term investors may find interest in the fact that the PE ratio is projected to drop to just 7 times fiscal 2030 estimates, suggesting potential for valuation multiple expansion as growth returns [11].

Group 1 - Adidas has shown a strong performance in Q3 2025, with global revenue increasing by 12% year-on-year to €6.6 billion (approximately ¥546.41 billion) excluding Yeezy factors, and operating profit rising by 23% to €736 million (approximately ¥60.93 billion) [1] - The Greater China region has been a key driver for Adidas, with revenue in Q3 2025 growing by 10% year-on-year to €947 million (approximately ¥78.40 billion) [1] - For the first three quarters of 2025, Adidas reported global revenue of €18.735 billion (approximately ¥155.11 billion), a 14% increase year-on-year, with Greater China revenue at €2.774 billion (approximately ¥229.66 billion), up 12% [1] Group 2 - Despite the growth, Adidas faces challenges as its revenue growth rate in Q3 was lower than in the first three quarters, indicating ongoing growth pressures in China [2] - Competitors like Anta and Li Ning have reported mixed results, with Anta showing low single-digit growth and Li Ning experiencing a decline in sales [2] - Nike's revenue in Greater China has also declined by 10%, highlighting the competitive landscape [2] Group 3 - Adidas's market share in China has dropped significantly from 15% in 2021 to 8.7% in 2024, while Nike's market share decreased from 18.1% to 16.2%, maintaining its leading position [3] - Anta's market share increased from 9.8% to 10.5%, ranking second, while Li Ning's market share slightly rose from 9.3% to 9.4% [3] - In 2024, Adidas ranked fourth in market share in China, trailing Li Ning by 0.7 percentage points [4] Group 4 - Given Li Ning's sales decline, there is a possibility that Adidas could surpass Li Ning in market position in China [5] - However, Adidas still has a long way to go in terms of self-positioning compared to its competitors [6]

Group 1: Adidas Q3 2025 Financial Report - Adidas reported a record global revenue of €6.6 billion in Q3 2025, marking the highest quarterly revenue in the company's history, driven by double-digit growth across all markets, categories, and channels [1] - The Greater China region achieved revenue of €947 million in Q3 2025, reflecting a year-on-year growth of 10%, continuing a trend of ten consecutive quarters of quality growth and four quarters of double-digit growth [1] - Based on the strong performance in Q3, Adidas raised its full-year guidance for 2025, expecting double-digit growth for the brand and an operating profit increase to €2 billion [1] Group 2: Hurun Rich List 2025 - The 2025 Hurun Rich List revealed that Zhong Shanshan, founder of Nongfu Spring, regained the title of China's richest person with a wealth increase of ¥190 billion, totaling ¥530 billion, setting a new record for the wealth of a Chinese billionaire [2] - Zhang Yiming, founder of ByteDance, ranked second with a wealth increase of ¥120 billion, primarily driven by the rising valuation of the company due to its AI business [2] - The list highlights the resilience of China's economy, showcasing a diverse economic landscape with strong consumer demand and technological innovation as key drivers of wealth creation [2] Group 3: BabyBus Apology for Inappropriate Ads - BabyBus issued an apology regarding inappropriate advertisements appearing on its app, stating that it has taken serious action against the responsible personnel and is enhancing its advertising review mechanisms [3] - The company is developing a forced ad interception feature to prevent similar incidents in the future, emphasizing a commitment to child safety [3] - Despite the apology, there remains a gap in rebuilding trust with parents, as the public seeks transparency in review processes and actual implementation of safety measures rather than reactive statements [3] Group 4: Mango Autumn 2025 Investment Conference - The 2025 Mango Autumn Investment Conference featured over 1000 brand clients and announced nearly 100 new variety shows, over 80 dramas, and more than 60 short dramas, showcasing Mango's commitment to content innovation [4] - The conference highlighted Mango's focus on diverse content to meet various audience needs, including a significant push into the two-dimensional consumer market [4] - The expansion of the Xiaomang e-commerce and cultural tourism sectors further enhances the commercial value of content, providing new development ideas for the industry [4]

Core Insights - Adidas' CEO indicated that U.S. retailers are ordering less product due to uncertainty surrounding tariffs, leading to widespread discounting [1][3] - Third-quarter sales in North America fell by 5%, with shares dropping over 10%, despite global revenue reaching a record of 6.63 billion euros ($7.73 billion) [2] - Adidas expects U.S. tariffs to reduce operating profit by 120 million euros this year, with the most significant impact anticipated in the fourth quarter [4] Sales Performance - North American sales decreased by 5%, and even after adjusting for currency effects, it remained the worst-performing market for Adidas [2][6] - Global revenue grew by 3%, reaching a quarterly record of 6.63 billion euros ($7.73 billion) [2] Retailer Behavior - Retailers are cautious and ordering less upfront, leading to increased flexibility with discounts to clear excess inventory [3] - The discounting trend is negatively impacting Adidas' full-price sales, as consumers are drawn to lower-priced competitors [3] Pricing Strategy - Adidas has raised prices on more expensive items while keeping prices stable for cheaper products to avoid alienating sensitive customers [5] - The price of the popular Samba sneaker increased from $90 to $100, although the visibility of these price increases to consumers is still uncertain [5] Supply Chain Adjustments - To mitigate the impact of tariffs, Adidas has reduced sourcing from China to the U.S. and implemented price hikes and supply chain changes [4][6] - A strong euro against the dollar resulted in a 300 million euro hit to quarterly sales, although North American sales adjusted for currency were up 1% [6]

Core Viewpoint - Adidas reported record-high quarterly revenue of €6.6 billion for Q3 2025, marking a 12% year-over-year increase excluding Yeezy factors, with a significant growth in both revenue and operating profit [1][3] Financial Performance - Q3 2025 global revenue reached €6.6 billion, the highest in company history, with a 12% increase year-over-year (excluding Yeezy) [1] - Operating profit for Q3 was €736 million, reflecting a 23% year-over-year growth [1] - Gross margin improved to 51.8%, up 0.5% from the previous year [1] - Year-to-date revenue for 2025 reached €18.735 billion, a 14% increase year-over-year [1] Revenue Breakdown - Footwear revenue grew by 11%, with running category revenue (ADIZERO 0 series) increasing by over 30% [1] - Apparel revenue rose by 16%, while accessories revenue saw a modest 1% increase [1] - Greater China region revenue grew by 10% to €947 million, marking four consecutive quarters of double-digit growth [1] Market Context - The competitive landscape is intensifying, with Nike reporting a 1% revenue increase to $11.7 billion for Q1 2026, and Puma experiencing a 2% decline in revenue [2] - Emerging brands like Lululemon and On Running are also facing challenges, with Lululemon lowering its annual revenue guidance [2][3] Strategic Initiatives - Adidas is focusing on local market strategies in China, including launching the 2026 World Cup ball and showcasing local designs at Shanghai Fashion Week [3][4] - The company aims to deepen its connection with local consumers and enhance brand engagement [4][5] Future Outlook - Based on Q3 performance, Adidas raised its full-year guidance for 2025, expecting double-digit growth and operating profit to reach €2 billion, up from previous estimates of €1.7 to €1.8 billion [5] - Following the Q3 earnings announcement, TD Cowen raised Adidas' target price from €190 to €201 [5]

Core Insights - Adidas reported record third-quarter revenue of €6.6 billion, marking a 12% year-over-year increase in constant currency terms, excluding the Yeezy factor [1][4] - Operating profit reached €736 million, a 23% increase compared to the previous year, with a gross margin improvement of 0.5 percentage points to 51.8% [1][4] Revenue Breakdown - The sports performance and sports fashion segments both achieved double-digit growth, with footwear revenue increasing by 11%, and running products, particularly the ADIZERO0 series, seeing over 30% growth [4] - Apparel revenue grew by 16%, while accessories revenue saw a modest increase of 1% [4] Regional Performance - The Greater China region achieved revenue of €947 million in the third quarter, reflecting a 10% year-over-year growth, marking ten consecutive quarters of quality growth [4][5] - For the first three quarters of the year, global revenue reached €18.735 billion, a 14% increase, with Greater China contributing €2.774 billion, up 12% [4] Strategic Focus - The CEO emphasized the importance of local thinking for global success, highlighting the brand's focus on sports performance, fashion, and comfort [4] - The company is transitioning towards 2026, which is anticipated to be another exciting year for sports, with ongoing demand in key market segments [4] Future Outlook - Based on the strong third-quarter performance, Adidas raised its full-year guidance for 2025, expecting double-digit growth and operating profit to increase to €2 billion, up from the previous estimate of €1.7 to €1.8 billion [5]

Core Viewpoint - Adidas' stock price in Germany continues to decline, currently down by 3.5% [1] Group 1 - Adidas' stock has shown a persistent downward trend in recent trading sessions [1]