Adidas occupies a strong #2 position in global sportswear behind Nike, with iconic brand equity built over decades. The stock has been on a recovery trajectory under CEO Bjørn Gulden, who inherited significant challenges including the costly Yeezy fallout and inventory bloat. Gulden has brought operational discipline and a back-to-basics approach that's showing results — margins are improving and classic franchises like Samba and Gazelle have driven genuine cultural momentum. However, the stock often trades at a premium valuation that prices in considerable optimism. The European listing on XETRA means less liquidity than US-listed peers, and currency exposure adds complexity. Dividend history has been inconsistent, with cuts during COVID and the 2022-2023 turbulence. I see Adidas as a quality brand with real turnaround momentum, but at current multiples, much of the good news feels already reflected in the price. Patience for better entry points seems prudent.
Iconic global brand with strong cultural relevance and heritage
Turnaround under Bjørn Gulden showing tangible margin improvement
Diversified geographic exposure with particular strength in Europe and China
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Description: Adidas AG (ADS) — publicly traded on XETRA. Global sportswear and athletic equipment manufacturer.
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