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, e-commerce and independent distributors.
8.3 %
Portfolio value 09/30/2022
8.4 %
Net dividend 12/31/2021
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 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) cost efficiency / overhead optimization mainly through economies of scale and (ii) increased profitability in the USA.

Solid balance sheet with strong cash conversion allows for attractive shareholders’ remuneration.

  • Supervisory Board 1/16*