Core Insights - Adidas anticipates that U.S. import tariffs will directly impact its operating profit by 120 million euros ($140 million) in 2025, with the most significant effect expected in the fourth quarter [1] Financial Impact - The projected impact of 120 million euros ($140 million) on operating profit highlights the financial strain that import tariffs may impose on the company [1] - The fourth quarter of 2025 is expected to bear the largest burden of these tariffs, indicating a potential seasonal effect on profitability [1]

Core Insights - Adidas reported record third-quarter revenue of €6.6 billion, a 12% year-over-year increase when excluding Yeezy factors [1] - Operating profit reached €736 million, reflecting a 23% year-over-year growth [1] - Gross margin improved by 0.5 percentage points to 51.8% [1] Revenue Breakdown - Footwear revenue grew by 11%, with the ADIZERO0 series running products seeing over 30% growth [1] - Apparel revenue increased by 16%, while accessories revenue saw a modest 1% growth [1] - In the Greater China region, revenue reached €947 million, a 10% year-over-year increase, marking ten consecutive quarters of quality growth [1] Strategic Initiatives - The "local thinking, global brand" strategy is identified as a core driver of performance, with a focus on the 2026 sports year [2] - The company plans to deepen insights into local demand in China as part of its growth strategy [2] - Following the third-quarter performance, Adidas raised its full-year guidance for 2025, expecting double-digit growth and operating profit of €2 billion, up from a previous estimate of €1.7 to €1.8 billion [2]

Core Viewpoint - Adidas has achieved significant growth in the Greater China region, marking ten consecutive quarters of "quality growth" with double-digit increases in revenue [2][5]. Financial Performance - In Q3 2025, Adidas reported global revenue of €6.6 billion, the highest quarterly revenue in the company's history, with a year-on-year growth of 12% (excluding Yeezy factors) [2]. - The operating profit for Q3 reached €736 million, reflecting a 23% year-on-year increase, while the gross margin improved by 0.5 percentage points to 51.8% [2]. - For the first three quarters of the year, global revenue totaled €18.735 billion, a 14% increase year-on-year, with Greater China contributing €2.774 billion, up 12% [3]. Market Strategy - Adidas CEO Gulden emphasized the importance of localizing the brand to resonate with consumers, which has been a key driver of the company's strong performance [3]. - The company is focused on transitioning smoothly into 2026, which is expected to be another exciting year for sports, with a growing demand in the segments of sports performance, fashion, and comfort [3]. Regional Insights - The Greater China region has seen continuous growth, with Q3 revenue reaching €947 million, marking a significant milestone in the company's strategy of "In China, For China" [5]. - The brand has successfully created a positive cycle from sports to street culture, enhancing brand visibility and engagement with local consumers [3][5]. Future Outlook - Based on the strong Q3 performance, Adidas has raised its full-year guidance for 2025, expecting double-digit growth and an increase in operating profit to €2 billion, up from the previous estimate of €1.7 to €1.8 billion [6].

阿迪达斯10月29日公布第三季度财报显示，营收66.3亿欧元，同比增长3%；净利润4.61亿欧元，同比增 长4.1%。 ...

Core Insights - The company reported a revenue increase of 12% year-over-year, marking the highest quarterly revenue ever achieved by the group according to Chief Executive Bjoern Gulden [1] Financial Performance - Revenue growth of 12% year-over-year indicates strong performance in the current quarter, reflecting the company's successful strategies and market positioning [1]

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Core Viewpoint - The article discusses the outsourcing model of Adidas, highlighting consumer reactions to the revelation that their products are manufactured by third-party factories like Xuezhongfei, which has sparked discussions about brand transparency and consumer awareness [4][12][23]. Group 1: Adidas Outsourcing Model - Adidas has largely outsourced its production to third-party factories, focusing on design, research, and marketing to maximize profits [4][8]. - The company has no significant production lines of its own, with only a small percentage of high-end products manufactured in Germany [8][12]. - The outsourcing model allows Adidas to maintain a "light asset" operation, reducing fixed asset investments and risks while enabling quick adjustments to production based on market changes [18][20]. Group 2: Consumer Reactions and Market Dynamics - Consumers have expressed dissatisfaction upon discovering that Adidas products are made by Xuezhongfei, leading to discussions about the price differences between branded and unbranded products [6][24]. - The price comparison shows that Adidas's down jacket, priced at 867.71 yuan with 70% down content, is significantly more expensive than a similar product from Xuezhongfei, which costs 569 yuan with 85% down content [6][8]. - The article notes a shift in consumer awareness, with a growing demand for transparency regarding product origins and manufacturing processes [23][24]. Group 3: Global Production Strategy - Adidas's production strategy has evolved, with a significant shift of manufacturing bases from China to Southeast Asia, particularly Cambodia and Vietnam, driven by cost considerations and supply chain optimization [16][20]. - In 2021, Cambodia became the largest manufacturing country for Adidas apparel, accounting for 21% of total production, while China's share dropped to 20% [16]. - Recent strategic adjustments have seen an increase in locally produced goods in China, with 95% of products sold in the Chinese market being "Made in China" [17]. Group 4: Quality Control and Challenges - The outsourcing model presents challenges in quality control, with reports of product quality issues arising from factories in Vietnam and Cambodia [20][22]. - The relationship between brands and their manufacturing partners is complex, balancing the need for production capacity with the risk of competition from the manufacturers themselves [22]. - The article emphasizes the importance of maintaining brand image and consumer trust, suggesting that brands should enhance supply chain transparency to meet evolving consumer expectations [23].

Core Viewpoint - The article discusses the outsourcing model of Adidas, highlighting consumer reactions to the revelation that their products are manufactured by third-party factories like Xuezhongfei, leading to discussions about brand transparency and consumer awareness [4][5][8]. Group 1: Adidas Outsourcing Model - Adidas has largely outsourced its production to third-party factories, focusing on design, research, and marketing to maximize profits [4][8]. - The company has no significant production lines of its own, with most of its manufacturing done by factories in regions like Guangdong and Fujian, China [8][9]. - The outsourcing strategy allows Adidas to maintain flexibility in production and cost management, enabling quick adjustments to market changes [15][16]. Group 2: Consumer Reactions and Market Dynamics - Consumers expressed dissatisfaction upon discovering that high-priced Adidas products were made by Xuezhongfei, prompting discussions about the value of brand versus actual product quality [5][19]. - A comparison of prices revealed that similar products from Xuezhongfei were significantly cheaper, raising questions about the pricing strategies of major brands like Adidas [5][19]. - The article notes a shift in consumer awareness, with buyers increasingly interested in the actual manufacturing details rather than just the brand name [18][19]. Group 3: Strategic Adjustments and Market Performance - Adidas has been adjusting its production strategy, with a notable increase in locally produced items in China, reflecting a shift back towards domestic manufacturing [12][14]. - The company aims to regain consumer trust through deeper localization and responsiveness to market demands, as evidenced by its plans to establish a new headquarters in Shanghai [14]. - Recent financial performance indicates a positive trend, with Adidas's revenue in the Greater China region growing by 10% year-on-year in 2024, showcasing the effectiveness of its strategic adjustments [15].

Core Insights - The controversy surrounding Adidas down jackets produced by Xuezhongfei highlights consumer concerns over brand value versus price-performance ratio [2][3][7] - Xuezhongfei, a mid-range down jacket brand under Bosideng, is experiencing significant growth, with a projected revenue of approximately 2.206 billion yuan for the 2024/25 fiscal year, accounting for 10% of Bosideng's total down jacket sales [2][8] - Adidas is facing challenges in maintaining its market position in China, with its market share declining below that of competitors like Nike and Anta [10][11] Company Performance - Bosideng's OEM business has seen a revenue increase of 26.4% year-on-year, reaching approximately 3.373 billion yuan, contributing 13% to the overall revenue [2][8] - Xuezhongfei's revenue for the 2023/24 fiscal year grew by 65.3% year-on-year, reaching 2.02 billion yuan, with its revenue share in the group increasing from 5.4% in 2022 to 10% in 2024 [8] - Adidas reported a revenue of 794 million euros (approximately 5.94 billion yuan) for the fourth quarter of 2024 in the Greater China region, reflecting a year-on-year growth of 16.1% [10] Brand Positioning - Adidas has shifted towards localization in China, with about 50% of its products designed locally and 80% manufactured in China, aiming to cater to local consumer preferences [4] - Xuezhongfei positions itself as a cost-effective brand, with products generally priced below 1,000 yuan, contrasting with Bosideng's main brand, which targets the high-end market with products priced between 1,000 and 3,000 yuan [5][6] - The growing consumer sensitivity to price and value is evident, with the percentage of consumers prioritizing low prices rising from 20% to 35% [7]

Core Viewpoint - Adidas has become the "old fourth" in the Chinese market, trailing behind Nike, Anta, and Li Ning, and is now in a clear expansion phase in China [1][2]. Group 1: Market Position and Challenges - Adidas's decline in market share is attributed to the fallout from the Yeezy partnership with Kanye West, which accounted for 8% of total revenue and 40% of profits before the partnership ended in October 2022 [2][3]. - The company's market share in China dropped from 15% in 2021 to 8.7% in 2024, while Nike's share decreased from 18.1% to 16.2% [3]. - Domestic brands are rising, with Anta's market share increasing from 9.8% to 10.5% and Li Ning's from 9.3% to 9.4% during the same period [4]. Group 2: Strategic Changes - Adidas is shifting its strategy in China, with 95% of products sold in the market being "made in China" and a focus on original designs [5]. - The influence of the Chinese team within Adidas is increasing, and the CEO has made multiple visits to China to strengthen relationships [6]. Group 3: Financial Performance - In Q2 2023, Adidas's revenue in Greater China grew by 11% to €798 million (approximately ¥6.65 billion), contrasting with Nike's 10% decline in the same region [8]. - Despite the growth, Nike's sales base is significantly larger, making direct comparisons challenging [8]. Group 4: Future Outlook - The path to a successful turnaround for Adidas in China is fraught with challenges, including competition from domestic brands and ongoing market fluctuations [9][10].