adidas is a global leader specialised in the design, development, production and distribution of sporting goods (footwear, clothing and equipment). Distribution is done through its own stores retail network, eCommerce and independent distributors.
16.8 %
Portfolio value 09/30/2021
Investment case

The sporting goods industry is expected to grow at 6-7% p.a. over the next few years, driven by secular trends:

  • Athleisure: a global fashion trend towards more casual dress
  • Health & Wellness: growing awareness on improving health and quality of life, further increased by the radical changes within the global society resulting from the Covid-19 pandemic
  • 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:

  • Digital: strong increase in e-commerce sales, accelerated throughout 2020 by the transformation of our economy and further adoption of online shopping and remote working under the effects of the Covid-19 lockdowns
  • Omni-channel approach: strong sales dynamics from both e-commerce and “own stores” (Direct-to-Consumer model)
  • The Chinese market, which has experienced strong momentum over the last few years
  • The increasing share of ‘‘sport-inspired’’ lifestyle products in adidas’ product range
  • The US market, where further market share gains are possible
  • Speed initiatives: clear objectives to reduce the time-to-market of products.

Potential for EBIT margin improvement is driven by (i) the ongoing disposal 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.

  • Supervisory Board 1/16*
  • General Committee 1/4*
  • Nomination committee 1/3*
  • Mediation Committee 1/4*
  • Supervisory Board General Committee Nomination committee Mediation Committee