Excluding the reimbursements by the French tax authorities of withholding taxes which had been applied to Total and ENGIE dividends
The sporting goods industry is expected to grow at 4-6% p.a. over the next few years, driven by secular trends:
- Athleisure: a global fashion trend towards more casual dress
- Health & Wellness: increasing focus on improving health and qualityof life
- Boom in sport and sportswear adoption in China
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.
There is potential for growth in sales, mainly supported by (i) the US market, where further market share gains are possible, (ii) the Chinese market, which has experienced strong momentum over the last few years, (iii) digital / omni-channel approach: accelerated digital roadmap, to remain well positioned vis-à-vis the ongoing retail transformation and (iv) speed initiatives: clear objectives to reduce the time-to-market of products.
Potential for EBIT margin improvement is driven by (i) the ongoing restructuring of the Reebok brand, (ii) cost efficiency / overhead optimization mainly through economies
of scale and (iii) increased profitability in the USA. Solid balance sheet with strong cash conversion allows for attractive shareholders’remuneration.