Market CompetitionRunning and footwear cycle appears to be moderating from a demand perspective, and competition is at record highs - contributing to persistent sector valuation contraction.
Sales Growth SlowdownAdidas Americas sales slowed to +8% y/y cc (ex-Yeezy) in Q3 from +15% in Q2.
Valuation ConcernsDespite a transformational change in Adidas strategy, execution, and go to market processes since 2022, P/E is near 10-year lows, and most peers are seeing multiples de-rate beyond historical levels.