adidas’ brand revival, disciplined pricing, and market-share gains create a high-quality turnaround with meaningful asymmetric upside if margin expansion continues.
Overview
adidas is a diversified global athletic and lifestyle brand with strong exposure to footwear, apparel, and accessories across Europe, North America, Greater China, Emerging Markets, Latin America, and Japan/South Korea. FY2025 showed a powerful turnaround: revenues rose 4.8% nominally, operating profit increased 53.8%, EPS rose 75.9%, and margins expanded through better pricing, freight savings, cost discipline, and DTC scale. Despite operational improvement, the share price reset sharply, creating a valuation gap versus improving fundamentals.