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Publication date: Jan. 3, 2024
- Year of establishment: 1949
- Year added to the EUROSTOXX 50: 2005
- Highest share price ever: €336.40 in August 2021
- Average trading volume: Approximately 500.000 shares per day
- Share price performance over the past 12 months: +30.61%
Introduction about the company
Adidas AG is a leading global sports brand based in Herzogenaurach, Germany. The company is active in the production and sale of sportswear, shoes, and accessories. Adidas is one of the largest sports brands in the world, known for its innovative designs and technological advances in the sports industry. Listed on the Frankfurt Stock Exchange under the symbol ADS, the company has built a strong reputation for performance-oriented products for athletes and sports enthusiasts worldwide.
Core figures & performance
In 2024, Adidas achieved sales of approximately €22.5 billion and net income of €0.87 billion. The company has nearly 60,000 employees worldwide and has strengthened its presence in markets around the world. Adidas is known for its strong brands including the iconic Adidas brand itself as well as Reebok which focuses on fitness and lifestyle. By January 2025, Adidas will have a market capitalization of
€42.2 billion. Adidas focuses on both premium products and broader markets and continues to diversify its product portfolio, including a growing focus on sustainability and environmentally friendly product development.
History & development
Adidas was founded in 1949 by Adolf "Adi" Dassler and has had a significant impact on the world of sports and fashion ever since. The company began producing athletic shoes and expanded into apparel and accessories. In the 1980s and 1990s, Adidas expanded its market reach worldwide, with partnerships with leading athletes and teams. In 2006, Adidas acquired Reebok, strengthening its position in the sports and fitness industry. In recent years, Adidas has increasingly focused on digitalization and sustainability, with initiatives such as using recycled polyester in its products and developing circular production models.
Sector & competition
Adidas operates in the sports and fashion industry, competing with companies such as Nike, Puma, and Under Armour. The company is distinguished by a unique combination of sports functionality and fashion-oriented designs, as well as a strong focus on sustainability and social responsibility. In an industry marked by rapid trends and technological advances, Adidas manages to maintain its position by constantly innovating and adapting to changing consumer demands.
Influence of Adidas on the EURO STOXX 50
Adidas has a small influence on the EUROSTOXX 50, with a weighting of 1.15% (measured in December 2024). Despite this limited impact on the index, Adidas is among one of Europe's larger companies. The company's results and strategic decisions are therefore closely monitored. Adidas' performance depends heavily on emerging trends in the sports and fashion industry and the extent to which the company manages to respond to them. The brand has built a strong reputation, thanks in part to collaborations with international stars such as Messi, Kanye West and Beyoncé.
Investment analysis & outlook
Adidas is seen by analysts as a stable investment with growth potential, thanks to its strong brand and global presence. Its focus on sustainability and technological innovation gives Adidas a competitive advantage in a dynamic market. Nevertheless, risks such as rising raw material costs, competitive pressures, and geopolitical tensions remain relevant. With strong performance in key markets such as North America and Asia, and increasing e-commerce activities, Adidas has a solid foundation for further growth.
Below is the price performance of Adidas compared to the EURO STOXX 50 over the past five years. This shows that Adidas, despite following general market trends, lags significantly behind the performance of the index. While the EURO STOXX 50 recorded a positive return of +30.05%, Adidas had to record a negative return of -18.92%.
A major cause of Adidas' sharp share price decline in 2022 was the termination of its collaboration with Kanye West, also known as Ye. This collaboration, which produced an iconic product line (Yeezys), brought significant revenue and publicity to the brand for years. Its sudden end caused a noticeable impact on financial results and investor sentiment.
Despite these setbacks, Adidas is in the process of recovery. The company is working on strategies to grow back toward 2021 share price levels, as seen below. By focusing on innovation, sustainability, and new partnerships, Adidas is determined to strengthen its position in the market and achieve future-proof growth.
News & updates
Recently, Adidas announced that it will further strengthen its focus on sustainability, with plans to develop fully circular products by 2030. The company is investing in new technologies to improve the environmental friendliness of its production processes. Adidas is also strengthening its digital platforms and online sales channels to meet changing consumer expectations. For more information on Adidas' performance and strategic plans, visit its official website: Adidas.com.
Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.
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