Core Viewpoint - Adidas has shown a recovery trend in performance despite global economic challenges, with a 12% revenue growth in Q3, leading to an upward revision of its annual performance forecast [1][2]. Group 1: Financial Performance - Adidas reported a Q3 revenue of €6.63 billion, up from €6.44 billion in the same period last year, marking a 12% increase after excluding currency effects [1]. - The company’s gross margin improved by 0.5 percentage points to 51.8%, and operating profit surged to €736 million, up from €598 million year-on-year, with the operating margin increasing from 9.3% to 11.1% [1]. - For the full year, Adidas now expects operating profit to reach approximately €2 billion, up from previous estimates of €1.7 billion to €1.8 billion [1]. Group 2: Market Strategy and Adaptation - In response to increased costs from U.S. tariff hikes, Adidas has implemented price increases across its product lines, with the Samba sneaker's price rising from $90 to $100 [2]. - The company has refocused on its core brand values and product innovation, revitalizing classic shoe models and expanding retro product lines [2]. - Adidas showcased its brand innovation at Shanghai Fashion Week, emphasizing three dimensions: speed in sports, rhythm of the East, and self-expression in street culture [2]. Group 3: Manufacturing and Supply Chain - Adidas has shifted to a model where 95% of its products sold in China are locally manufactured, reflecting a strategic focus on local production and design [4]. - The company has faced scrutiny over its use of OEM partners, such as Snow Flying, for producing down jackets, which has sparked consumer discussions about brand value versus manufacturing practices [4][5]. - The use of OEM models allows Adidas to concentrate on brand building and marketing while leveraging specialized manufacturers for production [5][6].