Adidas Plans €1 Billion Share Buyback as Profits Jump

Core Viewpoint - Adidas AG reported stronger-than-expected fourth-quarter profits and announced a new share buyback program to maintain momentum with retro sneakers and new running and football products [1] Financial Performance - The company generated an operating profit of €164 million ($196 million) in the fourth quarter, exceeding analyst estimates and driving full-year operating profit slightly above its October forecast [1] - Currency-neutral sales rose 10% for the quarter, slightly ahead of analyst estimates, despite being impacted by a weaker US dollar and tariffs, which affected revenue by over €1 billion last year [3] Share Buyback Program - Adidas announced a €1 billion buyback program starting in February, financed through the company's cash flow this year, with plans to terminate the repurchased shares [2] Market Reaction - Adidas shares rose as much as 5.8% in early Frankfurt trading on Friday, although they are down more than 40% over the past 12 months [2] Analyst Insights - Analysts noted that the currency impact in the fourth quarter was "much greater" than anticipated, yet the company managed to post double-digit revenue growth in all markets [4] - There is skepticism among investors regarding Adidas's growth ambitions, with concerns about the sustainability of the sneaker boom and the future performance of popular models like the Samba [6] Strategic Direction - CEO Bjorn Gulden aims to demonstrate a new era of sustainable growth for Adidas, focusing on performance running and football products as reliable components of earnings [5]