Adidas AG (ADS) – Macroeconomic challenges to slowdown the growth

Stock performance: Adidas stock gave returns of -2.5% and 43.6% in the period of three months and one year. The stock has a 52-week high of €188.60 and a 52-week low of €93.40. The stock gave returns of -40.7% and CAGR of -16% over a period of three years. The stock had a 200-Day Moving Average of €160.37 and a 50-Day Moving Average of €173.95.

Adidas AG (ADS) (Q2FY23)

Quarter Performance: In Q2FY23, ADS’s revenue declined by 5% to €5.34bn from €5.6bn in Q2FY22 and currency-neutral revenues were flat versus the prior-year level. The top-line development continued to be impacted by the company’s conservative selling approach in order to reduce high inventory levels, particularly in North America and Greater China. At the same time, adidas second-quarter revenues benefited from the first sale of some of its Yeezy inventory.

Guidance: For FY23, ADS expects currency-neutral revenues to decline at a at a mid-single-digit rate. The reported operating loss is expected to be €450mn.

Highlights

The other operating expenses which include operating overhead expenses and marketing and point-of-sale expenses increased by 3.24% to €2.58bn in Q2FY23, compared to €2.5bn in Q2FY22. As a percentage of sales, other operating expenses increased by 3.6pps to 48.3% from 44.7% during the same period.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10-Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Crispidea Coverage

No of Pages: 35

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