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  • 7.50 %
    Share capital 30/09/2017
  • 3,003 EUR M
    Value of the stake 30/09/2017
  • 7.5 %
    Voting rights 30/09/2017
  • 1
    Number of representatives in statutory bodies 30/09/2017
Investment Year 2015 Investment history

adidas is a global leader specialised in the design, development, production and distribution of sporting goods (footwear, clothing and equipment). The group’s business is built around four main brands: adidas, Reebok, Taylor Made and CCM. Distribution is done through its own stores retail network, e-commerce and independent distributors.

Investment case

adidas is a strong brand: #1 in Europe and #2 worldwide in the design and distribution of sporting goods. There is strong potential for growth in sales supported by (i) advertising and promotional expenditure, (ii) the company’s ability to introduce innovative products and (iii) the omni-channel (including digital) approach. adidas has the possibility to improve its EBIT margin from currently c. 7.7% to historical levels (c. 10% in 2008) via:

  • Optimising the structure of central costs, mainly through economies of scale.
  • Increased profitability in the USA and Russia.
  • A restructuring of the brand Reebok.

Half-year results 2017

  • Revenue increased by 18% on a currency-neutral basis to EUR 10,485 million. From a brand perspective, currencyneutral revenues grew 19% for adidas and 9% for Reebok.
  • Gross margin improved slightly to 49.9% (2016: 49.8%), reflecting the positive effects from an improved pricing, product and channel mix as well as lower input costs, which were largely offset by unfavourable currency developments.
  • Operating profit grew 20% to EUR 1,142 million, representing an operating margin of 10.9%, an increase of 0.1%.
  • During the half-year, adidas completed the planned divestiture of TaylorMade and CCM Hockey.

Outlook for 2017

Management at adidas revised its guidance upward due to the strong financial performance year to date. The company now expects sales to increase between 17% and 19% (previously between 12% and 14%). The operating profit is expected to increase between 24% and 26% (previously between 13% and 15%).

Governance

Board of Supervisory (1/16*) Audit Committee (1/4*)
Member Member
* Number of GBL's representatives in statutory bodies in relation to the total number of members