adidas is a global leader specialized in the design, development and distribution of sporting goods (footwear, apparel and equipment). Distribution is done through its own stores retail network, e-commerce and independent distributors.
Portfolio value 09/30/2023
Net dividend 12/31/2022
Investment case

The sporting goods industry is expected to grow + 6-7% per year over the next few years, driven by secular trends:

  • Athleisure: a global fashion trend toward casual dress
  • Health & wellness: growing awareness on improving health and quality of life

adidas is a strong brand in the design and distribution of sporting goods, (i) #1 in Europe and #2 worldwide and (ii) supported by strong innovation capability throughout multiple sponsorship agreements and partnerships.

There is potential for growth in sales, mainly supported by:

  • Recovery after industry-wide challenges including supply chain disruptions, elevated inventory levels and Covid-19 lockdowns in China
  • Omni-channel approach: strong sales dynamics from both third party distribution (wholesalers) and a Direct-to-Consumer model (e-commerce and own stores)
  • The increasing share of sport-inspired lifestyle products in adidas’ product range
  • Balanced growth across all geographies outside of China (reduced exposure to China and strong growth in markets that represent more than 80% of the business)
  • The US, where further market share gains are possible
  • Speed initiatives: clear objectives to reduce time-to-market

Potential for EBIT margin improvement is driven by (i) channel mix optimization, (ii) cost efficiency/overhead optimization, mainly through economies of scale and (iii) increased profitability in the US. The company's focus lies in margin preservation/recovery in the current inflationary environment and after the termination of the Yeezy partnership.

adidas has a solid balance sheet and cash conversion.

  • Supervisory Board 1/16*
  • Nomination Committee 1/3*
  • Remuneration Committee 1/4*
  • Supervisory Board Nomination Committee Remuneration Committee