Skip to Content

adidas AG ADR ADDYY

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Timing of Narrow-Moat Adidas’ Sale of Reebok Looks Good; Shares Expensive

David Swartz Equity Analyst

Analyst Note

| David Swartz |

Adidas announced that it has agreed to sell Reebok to Authentic Brands Group for up to EUR 2.1 billion ($2.5 billion). ABG (which we had identified as one of the final bidders in our Aug. 5 note) owns numerous clothing, media, and sports properties, and recently acquired some of no-moat PVH’s heritage brands. Most of the selling price will be received in cash at the time of closing, with the remainder being deferred and contingent consideration. The sale was executed at about double our prior estimate of EUR 1 billion, likely because Reebok’s recent results have improved on the surge in activewear demand over the past year. Reebok achieved currency-neutral sales growth of 94% and 13% over 2020 and 2019, respectively, in Adidas’ second quarter.

Read Full Analysis

Company Profile

Business Description

Adidas designs, develops, produces, and markets athletic and leisure apparel, footwear, accessories, and sports equipment. Under its eponymous brand, it produces apparel for competitive athletics, casual activewear, and casual fashion. Its fashion brands include Yeezy, Ivy Park, and Y-3. Adidas sells its products in more than 160 countries through more than 2,400 owned retail stores, 15,000 mono-branded franchise stores, 150,000 wholesale doors, and more than 50 e-commerce sites. The company was founded in 1949 in Germany.

Contact
Adi-Dassler-Strasse 1
Herzogenaurach, BY, 91074, Germany
T +49 9132840
Sector Consumer Cyclical
Industry Footwear & Accessories
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 62,285

Related

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.