adidas is a global leader specialized in the design, development and distribution of sporting goods (footwear, apparel and equipment). Distribution occurs through its own retail stores network, e-commerce and independent distributors.
Portfolio value 03/31/2024
Investment case

The sporting goods industry is expected to grow + 6-7% annually 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) #2 worldwide and (ii) supported by strong innovation capability throughout multiple sponsorship agreements and partnerships.

Sales growth potential in the mid- to long-term is mainly supported by:

  • The increasing share of sports-inspired lifestyle products in adidas’ product range
  • An omni-channel approach encompassing strong sales dynamics from third-party distribution (wholesalers) and a Direct-to-Consumer model (e-commerce and own stores)
  • Balanced growth across all geographies
  • The US, where further market share gains are possible
  • Speed initiatives with clear objectives to reduce time-to-market

The company’s current focus lies on margins, with potential for EBIT margin improvement driven by (i) channel mix optimization, (ii) cost efficiency/overhead optimization, mainly through economies of scale and (iii) increased profitability in the US.

adidas has a solid balance sheet and cash conversion.

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