The FIFA World Cup has entered its third week, with packed stadiums, soaring television audiences, and fans closely following every twist in the tournament. But while the football has dominated headlines, equity analysts have been studying another competition unfolding off the pitch: which listed companies stand to benefit most from the world's biggest sporting event.
RBC Capital Markets has upgraded adidas AG (OTCQX:ADDYY) to Outperform, lifting its price target to €210 from €170, whilst claiming the three-striped sportswear group now offers one of the strongest earnings growth profiles in the Canadian bank's coverage, yet its valuation still looks discounted. The newly pitched price target implies around 28% upside, and RBC points out that Adidas trades on roughly 13 times FY27 earnings, a level that the broker reckons doesn't fully reflect improving execution and revenue visibility.
With the 2026 FIFA World Cup imminent, sportswear giants are preparing for what should be one of the most lucrative merchandise events in soccer's history and a global showcase for new national team kits from Nike, Adidas and Puma.
The Shoes & Retail Apparel industry players ride premium brands and digital growth, even as promotions, inventory and cost inflation keep pressure on margins. Stocks like ADDYY, SHOO, CRI, WWW and CAL are positioned for growth.
Adidas reported first-quarter operating profit of €705 million, beating analyst expectations as robust demand for apparel and performance categories helped the German sportswear group start 2026 on a strong footing. The result was above the €647 million average estimate in a company-compiled analyst consensus and marked a 16% increase from €610 million a year earlier.
The sporting-goods company confirmed its outlook for the year but noted that the current environment is characterized by economic challenges and high uncertainty.
Talk about a missed opportunity: the first competitive marathon runner to complete the race in under two hours wore Adidas sneakers — but runners who want to wear the same gear are not able to order it.
In the highly competitive sportswear industry, Nike holds a commanding lead—but its lead is narrowing. Adidas, the number two player, just reported double-digit growth across all segments and markets in the fourth quarter of 2025, reaching $29 billion (€24.8 billion) in annual sales.
I upgrade adidas to Buy as the business recovery is now clear, with broad-based growth and improved product quality. ADDYY delivered 13% FX-neutral revenue growth and 54% EBIT growth in FY25, even without Yeezy contributions. North America has shifted from a drag to a growth contributor, reducing a key risk to the turnaround thesis.
Adidas is recovering top-line growth, but inventory buildup and volatile cash flows raise questions about the quality of this rebound. ADDYY/ADDDF trades at undemanding multiples, reflecting market skepticism about management's ability to normalize inventory and sustain high-single-digit growth. Management guides for FY26 revenue growth in the high single digits and ~€2.3B operating profit, but execution and inventory normalization are critical.
ADDYY, ATR and CNQ have been added to the Zacks Rank #5 (Strong Sell) List on March 9th, 2026.
adidas AG (ADDYY) Q4 2025 Earnings Call Transcript