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Adidas
(OTC:ADDYY)
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Rating:65Neutral
Price Target:
$99.00
▲(0.23% Upside)
Action:Reiterated
Date:08/01/26
The score is primarily supported by improving fundamentals and a constructive earnings update (profit recovery, positive free cash flow, strong operational momentum and reiterated targets). It is held back by weak near-term technicals (price below key short/medium moving averages) and moderate financial risk factors (meaningful leverage and working-capital/cash-conversion pressure), while valuation looks fair rather than distinctly cheap.
Positive Factors
Direct-to-Consumer Momentum
Sustained DTC and e‑commerce growth signals structurally higher-margin, more controllable revenue. A larger DTC base improves full‑price sell‑through, customer data and lifetime value, reducing dependence on wholesale over time and supporting more stable margin expansion and brand control.
Negative Factors
Elevated Leverage
Meaningful leverage reduces financial flexibility to invest, absorb shocks or extend aggressive buybacks/dividends if conditions worsen. Even with improved equity, higher net debt relative to history increases refinancing and liquidity risk during cyclical slowdowns or prolonged margin pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Direct-to-Consumer Momentum
Sustained DTC and e‑commerce growth signals structurally higher-margin, more controllable revenue. A larger DTC base improves full‑price sell‑through, customer data and lifetime value, reducing dependence on wholesale over time and supporting more stable margin expansion and brand control.
Read all positive factors
Adidas (ADDYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.48B
Dividend Yield1.76%
Average Volume (3M)22.74K
Price to Earnings (P/E)20.9
Beta (1Y)1.00
Revenue Growth13.94%
EPS Growth22.96%
CountryUS
Employees64,938
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)3.91
Shares Outstanding360,000,000
10 Day Avg. Volume59,169
30 Day Avg. Volume22,743
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)5.20
Price to Sales (P/S)1.26
P/FCF Ratio138.40
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.4
Revenue Forecast (FY)$31.00B
Adidas Business Overview & Revenue Model
Company Description
adidas AG, along with its affiliated businesses, operates internationally in the conceptualization, creation, distribution, and promotion of athletic and sports-inspired lifestyle merchandise. Its diverse product line, exclusively under the well-k...
How the Company Makes Money
adidas primarily makes money by selling footwear, apparel, and accessories worldwide through a mix of wholesale and direct-to-consumer channels. (1) Wholesale revenue: A significant portion of sales comes from selling adidas-branded products in bu...
Adidas Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and commercial story: robust demand drove 14% currency‑neutral top‑line growth, strong DTC/e‑commerce momentum, substantial apparel and performance category gains, and a meaningful increase in operating profit to EUR 705 million. Management also highlighted product innovation, regional market wins and continued shareholder returns. Key negatives include a 100 bps gross margin drag from FX and tariffs, deliberate inventory and working‑capital build that reduced cash, ongoing footwear/lifestyle discount pressure, and geopolitical and cost‑inflation risks (Middle East, oil/transport). Management believes these headwinds are manageable, reiterated guidance, and outlined clear medium‑term targets (EUR ~2bn p.a. growth and ~10%+ EBIT by 2027). Overall, positives (strong growth, margin resilience, DTC strength, innovation and shareholder returns) outweigh the identifiable, addressable risks.Positive Updates
Strong Top-Line Growth
Q1 net sales grew 14% currency-neutral (reported +7%), delivering nearly EUR 6.6 billion in revenue and demonstrating broad demand across markets and channels.
Negative Updates
Gross Margin Headwinds
Reported gross margin at 51.1% was down ~100 basis points year-over-year; management attributes this to FX translation effects and new U.S. tariffs (FX and tariffs cited as material negative drivers ~€50m scale each).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Q1 net sales grew 14% currency-neutral (reported +7%), delivering nearly EUR 6.6 billion in revenue and demonstrating broad demand across markets and channels.
Read all positive updates
Company Guidance
Adidas reiterated its full‑year guidance and longer‑term targets: management expects to add roughly EUR 2.0bn of sales p.a., deliver high‑single‑digit growth in 2027–28 and reach a 10%+ EBIT margin by 2027. In Q1 the company delivered ~EUR 6.6bn revenue (14% currency‑neutral, 7% reported), gross margin 51.1% (down ~100bps; FX and new U.S. tariffs each ~EUR 50m), operating profit EUR 705m (10.7%, ≈+EUR 100m YoY), net income EUR 484m (+11%) and basic EPS broadly stable; marketing was 11.5% of sales, operating overheads +3%. Channel and product metrics: DTC +22% (own retail +19%, e‑commerce +25%), channel mix ~62% wholesale / 38% DTC (stores 22% / e‑comm 16%), product split 56% footwear / 37% apparel / 7% accessories, footwear +4%, apparel +31%, accessories +13%, performance +29% (running ≈30%). Working capital/inventory: inventories +13% (17% cc), receivables +11% (16% cc), working‑capital up 21% (26% cc); Q1 tax ~25%. Cash return and financing: completed EUR 500m buyback (3.3m shares), another EUR 500m buyback planned and a proposed EUR 500m dividend (total ~EUR 1.5bn return in 2026). Management flagged an FY FX headwind of ~3–4%, expects gross margin to improve in H2 as hedges roll and will step up Q2 marketing for the World Cup; a potential tariff recovery of ~EUR 300m is not included in guidance.Adidas Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.98B | 23.83B | 23.68B | 21.43B | 22.51B | 21.23B |
| Gross Profit | 13.40B | 11.23B | 12.03B | 10.18B | 10.64B | 10.77B |
| EBITDA | 3.17B | 2.97B | 2.51B | 785.00M | 1.75B | 3.11B |
| Net Income | 1.38B | 1.29B | 764.00M | -75.00M | 254.00M | 1.49B |
Balance Sheet | ||||||
| Total Assets | 21.06B | 20.25B | 20.66B | 18.02B | 20.30B | 22.14B |
| Cash, Cash Equivalents and Short-Term Investments | 1.56B | 1.64B | 2.48B | 1.48B | 966.00M | 3.94B |
| Total Debt | 5.98B | 5.55B | 5.59B | 5.56B | 6.46B | 5.33B |
| Total Liabilities | 14.71B | 14.13B | 14.79B | 13.10B | 14.95B | 14.30B |
| Stockholders Equity | 5.96B | 5.77B | 5.48B | 4.58B | 4.99B | 7.52B |
Cash Flow | ||||||
| Free Cash Flow | 1.77B | 217.08M | 2.37B | 2.13B | -1.24B | 2.52B |
| Operating Cash Flow | 2.20B | 565.75M | 2.91B | 2.55B | -543.00M | 3.19B |
| Investing Cash Flow | -425.03M | -443.77M | -356.00M | -450.00M | 495.00M | -424.00M |
| Financing Cash Flow | -1.42B | -848.15M | -1.56B | -1.43B | -2.96B | -2.99B |
Adidas Technical Analysis
Negative
98.77
Price Trends
99.89
Negative
91.17
Positive
91.14
Positive
Market Momentum
-1.83
Positive
41.08
Neutral
35.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADDYY, the sentiment is Negative. The current price of 98.77 is above the 20-day moving average (MA) of 98.76, below the 50-day MA of 99.89, and above the 200-day MA of 91.14, indicating a neutral trend. The MACD of -1.83 indicates Positive momentum. The RSI at 41.08 is Neutral, neither overbought nor oversold. The STOCH value of 35.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADDYY.
Adidas Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $13.27B | 13.80 | 41.10% | ― | 7.48% | 8.03% | |
70 Outperform | $7.30B | 16.90 | 12.95% | ― | 20.35% | 54.59% | |
68 Neutral | $6.63B | 11.30 | 43.41% | ― | -2.03% | 205.97% | |
65 Neutral | $34.48B | 20.93 | 23.55% | 1.67% | 13.94% | 22.96% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $62.47B | 19.68 | 22.00% | 3.91% | >-0.01% | -2.96% |
* Consumer Cyclical Sector Average
ADDYY
Adidas
93.61
-2.21
-2.31%
CROX
Crocs
131.71
53.81
69.08%
DECK
Deckers Outdoor
93.84
-9.90
-9.54%
NKE
Nike
41.32
-31.58
-43.32%
BIRK
Birkenstock Holding plc
37.47
-11.67
-23.75%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.