The Shoes & Retail Apparel industry players stand to benefit as premiumization, performance innovation and digital expansion reshape demand. Stocks like ADDYY, SHOO, WWW, CRI and CAL are positioned for growth.
adidas (ADDYY) is fundamentally solid but faces valuation concerns, with a 'HOLD' rating and a €150/share price target justified by persistent structural risks. Recent growth is driven by non-recurring World Cup trends, while inventory build and weak operating leverage raise doubts about sustainable earnings momentum. Despite headline sales and margin improvements, ongoing inventory issues and reliance on volatile wholesale/fashion cycles undermine through-cycle earnings stability.
adidas AG (ADDYY) Q2 2026 Earnings Call Transcript
adidas ETR: ADS reported record quarterly sales in the second quarter of 2026, citing strong demand through its direct-to-consumer channels, World Cup-related apparel sales and continued momentum in performance categories. The company raised its full-year sales growth outlook while maintaining its operating-profit forecast.
The sportswear company's stock declined 17% after it reported a 30% hike in marketing expenditure.
Excluding currency movements sales surged 14%, and the company now anticipates an increase in constant-currency revenue of between 9% and 10%.
German sportswear maker Adidas on Thursday raised its sales forecast for the year, following what it said it was a better-than-expected sales performance during the first half.
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.