{"id":46189,"date":"2026-06-30T19:26:10","date_gmt":"2026-06-30T19:26:10","guid":{"rendered":"https:\/\/www.europesays.com\/germany\/46189\/"},"modified":"2026-06-30T19:26:10","modified_gmt":"2026-06-30T19:26:10","slug":"analysts-bullish-on-adidas","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/germany\/46189\/","title":{"rendered":"Analysts Bullish on Adidas"},"content":{"rendered":"

\n\tWorld Cup fever is giving Adidas<\/a> strong global momentum ahead of the the German brand\u2019s second quarter results on July 30.<\/p>\n

\n\tHSBC global luxury and consumer analyst Akshay Gupta sees Adidas<\/a> continuing to ride the wave of World Cup excitement, with foreign exchange sales growth<\/a> of 15 percent and an earnings before interest and taxes (EBIT) margin of 10.6 percent or up 470 basis points year-over-year. <\/p>\n

\n\t\u201cA strong brand heat, healthy product pipeline across both performance and lifestyle segments, and solid execution at the time when its arch-rival Nike is struggling with a slower-than-anticipated brand turnaround is helping Adidas deliver a strong financial performance,\u201d Gupta said.<\/p>\n

\n\tAdidas is set to showcase its pipeline of upcoming product launches during this year\u2019s Innovation Day, slated for Sept. 23 and 24. Separately, ahead of the World Cup\u2019s kickoff in North America, the brand in February opened its first Adidas U.S.-only soccer-focused store<\/a> at the American Dream Mall, featuring performance footwear and apparel in an immersive format. And the brand also took over 35 Nordstrom stores<\/a> with pop-ups for a sport-meets-style vision through an exclusive edit of the Adidas World Cup assortment, organized by country styled head to toe through a fashion-forward lens. <\/p>\n

\n\tHe said soccer\u2019s mega-event contributed 250 million euros in sales for the first quarter, and that Adidas management expects a similar level of contribution in the second quarter. <\/p>\n

\n\tThe HSBC analyst also noted that the brand is ahed of the industry average with web-traffic up 33 percent year-over-year versus Nike at down 2 percent for April and May, and that \u2014 per Placer.ai \u2014 U.S. foot traffic is up by 4.2 percent year-over-year in May, versus the industry\u2019s decline of 4.8 percent. And during the first week of the World Cup, U.S. foot traffic in Adidas stores \u201csurged by 16 percent year-over-year while it declined for Nike,\u201d Gupta noted, adding that Adidas is sponsoring 14 teams, of which four are among the top ten ranked teams. In comparison, Nike is sponsoring 12 teams and Puma \u2014 rounding out the top three athletic brands \u2014 is at 11.<\/p>\n

\n\tFor the second quarter, Gupta said a 15 percent sales growth<\/a> rate at constant foreign exchange rates would be the \u201cfastest growing quarter since Q4 2024,\u201d helped by the better-than-initially expected World Cup sales performance. He is also expecting a gross profit margin of 51.3 percent, down 40 basis points year-over-year due to the negative impact from foreign exchange and U.S. tariffs.<\/p>\n

\n\t\u201cWe believe that Adidas should be in a position to raise its 2026 guidance, as we expect a constant foreign exchange sales growth rate of 11.0 percent [and] an EBIT of 2.6 billion euros,\u201d Gupta said. He also noted that the recent correction in oil prices should also ease concerns linked to potential margin headwinds in the second half of 2026 and 2027. <\/p>\n

\n\tAt Deutsche Bank, consumer discretionary and luxury analyst Adam Cochrane also expects Adidas to deliver a \u201cgood\u201d second quarter, helped by improving brand heat and the World Cut benefit. He expects that the first half of 2026 \u201cwould see the peak of Adidas foreign exchange sales growth and as growth slows in the [second half] of 2026, it will be replaced by strong gross margin drivers and ongoing [operating expenditure] management.\u201d<\/p>\n

\n\tCochrane sees fiscal year earnings per share (EPS) at 9.8 euros, approaching the 10 euro per share before U.S. tariffs were imposed, and fiscal year 2027 EPS at 12.2 euros.<\/p>\n

\n\t\u201cAcross our coverage, Adidas remains one of the most compelling investment cases and despite a tough overall sporting goods backdrop, we believe the sales outperformance can be maintained,\u201d the Deutsche Bank analyst said. <\/p>\n

\n\tFor the second quarter, Cochrane expects sales growth on a constant foreign exchange rate to be \u201ceven stronger than we expected,\u201d prompting him to increase projections to 16 percent from prior estimates of 14 percent. That level presumes an 11 percent underlying rate, plus a 7 percent benefit from the World Cup, partially offset by a 1 percent drag from Middle East operations. By region, sales in Europe are forecasted at up 15 percent, North America up 18 percent, China up 15 percent, with emerging markets flat, Latin America up 35 percent and Japan and Korea up 20 percent. But Adidas also is expected to see gross margin pressures due to foreign exchange and tariffs. <\/p>\n

\n\tDrake MacFarlane, research analyst at global data analytics firm M Science, sees Adidas as the winner in the ultra-low profile sneaker category<\/a>, noting also positive trends for Samba both in the direct-to-consumer and wholesale channels. In particular, the Samba Jane contributed to both in-store and online spendin growth accelerating for Adidas from April to May. <\/p>\n

\n\tThis year, Adidas had an historic London Marathon win<\/a> as three winners each wore the new Adidas Adizero Adios Pro Evo 3<\/a> shoe \u2014 the lightest running shoe ever \u2014 to victory. Kenya\u2019s Sebastian Sawe in men\u2019s and Ethiopia\u2019s Tigist Assefa in women\u2019s, as well as second place men\u2019s finisher Yomif Kejelcha, each wore the new\u00a0Adidas\u00a0shoe.\u00a0<\/p>\n

\n\tIn April, when Adidas posted first-quarter results, CEO Bj\u00f6rn Gulden<\/a> said during the company\u2019s conference call that Adidas is in the final year of its four-year turnaround plan. Gulden also told analysts that the biggest opportunity for the brand over a longer period is Europe, which currently is a \u201cmarket that is currently not growing at all.\u201d <\/p>\n","protected":false},"excerpt":{"rendered":"World Cup fever is giving Adidas strong global momentum ahead of the the German brand\u2019s second quarter results…\n","protected":false},"author":2,"featured_media":30564,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21254],"tags":[21290,39098,9854,39099],"class_list":["post-46189","post","type-post","status-publish","format-standard","has-post-thumbnail","category-adidas","tag-adidas","tag-gross-margins","tag-sales-growth","tag-sourcing-journal"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts\/46189","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/comments?post=46189"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts\/46189\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/media\/30564"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/media?parent=46189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/categories?post=46189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/tags?post=46189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}