$ADS (-0,28%)

Herzogenaurach - The sporting goods group Adidas is continuing its good run and has grown strongly at the start of the year. Sales and operating profit rose more strongly than expected. However, the Herzogenaurach-based company has apparently not changed its forecast for the time being in view of the uncertain environment. Last year, the company regularly raised its outlook with the presentation of better-than-expected quarterly figures.

As a result, Adidas shares climbed by a good two percent on Thursday morning, making them one of the top performers on the Dax . According to Barclays analyst Carole Madjo, the Herzogenaurach-based company had once again clearly topped expectations with its key figures. The strong profitability, even without Yeezy, is evidence of enormous brand strength. The Group continues to develop strongly in a difficult environment, wrote Piral Dadhania from the Canadian bank RBC. "This is undoubtedly also due to the weakness of competitors such as Nike and Puma."

Analyst Adam Cochrane from Deutsche Bank saw no signs of a slowdown in business. The operating result exceeded market estimates by twelve percent and sales were also better than expected. The surprisingly good figures should support the forecast for the year as a whole.

Adidas has so far forecast currency-adjusted sales growth in the high single-digit percentage range, with the Adidas brand expected to grow by at least ten percent. The operating result is expected to reach 1.7 to 1.8 billion euros - after 1.3 billion euros in the previous year. According to Chochrane, analysts already have almost 2.1 billion euros on the cards.

The company had based its forecast published at the beginning of March, which was already classified as "conservative" at the time, on a "volatile" market environment. In addition, the customs policy of the new US government was still in its infancy.

In the first quarter, Adidas sales increased by almost 700 million to 6.15 billion euros compared to the same period last year, as the DAX company surprisingly announced on Wednesday evening. This corresponds to currency-adjusted growth of 13 percent. Excluding the sales of Yeezy products in the previous year, currency-adjusted growth amounted to 17 percent. This was due to double-digit percentage growth in all markets and all sales channels.

The gross margin increased by 0.9 percentage points year-on-year to 52.1 percent in the first quarter. The operating result rose from 336 to 610 million euros. The operating margin jumped from 6.2 to 9.9 percent. Adidas also reported better than expected results.

After the sale of the remaining Yeezy inventories was completed at the end of 2024, the results for the first quarter did not include any contributions from this area. The final quarterly results are to be published on April 29. (awp/mc/ps)

https://www.moneycab.com/international/adidas-schafft-starken-jahresauftakt/

Subscribe to the podcast so that the bottom is reached soon.

00:00:00 Market environment

00:21:40 Nike, Adidas, Puma, On Holdings, Lululemon, Under Armor

00:35:50 Finding the bottom: Vix, Oil Price, Baltic Dry Index, Gold, Bonds / Bonds, CME FED Watchtool, St. Louis FRED Overnight Reverse Repurchase Agreements, COT

01:18:30 Chevron, Exxon, Occidental Petroleum, BP, Shell

Oil & Gas Exploration & Production A1JKQL

WisdomTree WTI Crude Oil A0KRKU

iShares MSCI World Energy Sector A2PHCF

01:29:35 China shares

01:44:25 Container ship shares

Spotify

https://open.spotify.com/episode/28RlbWBRC6xGUJ8AkHVcFU?si=w1t0GJtDTWOwNuUADqWoPQ

YouTube

https://youtu.be/QvUuYYmxk2k

Apple Podcast

https://podcasts.apple.com/de/podcast/84-china-aktien-%C3%B6l-aktien-sportartikel-aktien-containerschiff/id1695869891?i=1000703088147

$ZIM (+1,76%)
$MAERSK A (+0,52%)
$SHEL (+1,27%)
$XOM (+0,12%)
$CVX (-0,13%)
$BP. (+0,21%)
$OXY (+0,17%)
$ADS (-0,28%)
$NKE (-0,18%)
$PUM (-0,34%)
$UAA (-1,96%)
$LULU (-0,38%)
$WTI
$1BRN
$SPOT (+2,68%)
$AAPL (+0,28%)
$GOOG (-1,83%)
$GOOGL (-1,98%)
$BABA (+1,15%)
$700 (+1,13%)
$BYD (-0,77%)
#china
#zoll
#podcast

Slump in the DAX: investors are seeing red

There is a great deal of uncertainty on the stock markets at the moment, and this is being further fueled by US President Trump's aggressive tariff policy. On the last trading day of the week, investors have to accept massive losses in the Dax. Of the 40 companies listed in the leading German index, only two shares were able to record a positive closing price. The remaining 38 stocks experienced double-digit declines in some cases. Deutsche Bank was particularly affected $DBK (+1,96%)which fell by 9.77 percent, and MTU Aero Engines $MTX (+5,29%)whose shares fell by 8.11 percent. Deutsche Börse, Infineon $IFX (+1,84%) and Siemens Energy $SIE (+3,19%) also suffered losses of more than 7 percent. The Dax itself closed 4.95 percent lower at 20,641.72 points.

Trade war continues to weigh on the markets

Pressure on the markets remains high as uncertainty over trade relations between the USA and China persists. China's announcement that it would impose counter-tariffs on US goods has heightened fears of a full-scale trade war. At times on Friday, the Dax fell by up to 5.6 percent to 20,579 points. The MDax and EuroStoxx50 also suffered significant losses. There were significant declines in the banking sector in particular, which is heavily dependent on economic developments. Deutsche Bank and Commerzbank $CBK recorded losses of up to 12.1 and 9.3 percent respectively. Volatility on the markets is likely to remain high as long as the uncertainty surrounding customs policy persists.

Slight stability at Adidas and Beiersdorf

Despite the general downward trend, there were also some bright spots in the Dax. The shares of Adidas $ADS (-0,28%) were able to maintain their position as the lone frontrunner with a plus of 0.54 percent. Symrise $SY1 (-0,1%) and Beiersdorf $BEI (-1,28%) also remained relatively stable, with Symrise recording a minimal gain of 0.01%, while Beiersdorf fell by 0.37%. Investors are hoping that the negative spiral of tariffs and counter-tariffs can be halted through negotiations, but the uncertainties remain and could continue to weigh on the markets.

Sources:

https://www.n-tv.de/wirtschaft/Das-sind-die-groessten-Verlierer-im-Dax-article25682125.html

https://www.n-tv.de/wirtschaft/Dax-schmiert-ab-US-Zoelle-China-Zoelle-und-jetzt-article25681044.html

Which Dax shares do you have in your portfolio?

Source: https://t.co/1KCO9l8ZsE

#dax
#dividend
#dividende
#dividends

$ADS (-0,28%)
$AIR (+2,53%)
$ALV (+0,85%)
$BAS (+1,27%)
$BAYN (+3,54%)
$BMW (+1,77%)
$BEI (-1,28%)

Puma is facing an exciting change in leadership. Arthur Hoeld, who until last year was Head of Sales at Adidas $ADS (-0,28%) will take over as the new Managing Director on July 1. He succeeds Arne Freundt, who is leaving the company. Matthias Bäumer, previously responsible for the team sports division, will be appointed to the Executive Board as Head of Sales with retroactive effect from April 1. Heloise Temple-Boyer, Chairwoman of the Supervisory Board, is convinced that Hoeld will lead the company into a new phase of growth with his strategic vision and clear focus on the Puma brand. His aim is to focus the brand more strongly on "authenticity in sport". However, his time at Adidas was not without controversy, ending abruptly and resulting in a severance payment of 4.4 million euros.

In the USA, President Donald Trump's announcement caused massive turbulence on the markets. The Japanese Nikkei share index recorded a dramatic fall of over four percent on Thursday morning, sending it to an eight-month low. This development is closely linked to Trump's plans to impose new counter-tariffs on Japanese goods, which include a 24% tariff burden. In early trading, the Nikkei fell by as much as 4.6 percent and traded at 34,102.00 points for the first time since August 7. The broader Topix also followed this downward trend and lost up to 4.3 percent. In the midst of this uncertainty and market instability, the price of gold rose to a record high, as investors often turn to gold as a safe haven in times of crisis.

Sources:

https://www.spiegel.de/wirtschaft/puma-fuehrungswechsel-arne-freundt-geht-arthur-hoeld-kommt-a-e323eced-2472-4cc5-8a0c-1f203b5dc9ab

https://www.spiegel.de/wirtschaft/donald-trumps-zoelle-nikkei-bricht-ein-goldpreis-steigt-auf-rekordhoch-a-4d5f69cf-15dc-4e80-b1c9-f87c82319f04

$ADS (-0,28%) down 9% today due to Trump's tariffs on Vietnam 🇻🇳 China 🇨🇳 and Cambodia 🇰🇭

Is this a nice discount campaign to get in there?

Adidas P/E ratio is, however, far above those of $NKE (-0,18%) and $PUM (-0,34%) which indicates overvaluation.

What is your assessment of the share?

Hello my dears,

again and again I see here the requests for the largest sporting goods manufacturer in the world

nike $NKE (-0,18%) .

But let's take a look at who has won the performance race historically. Then we discover a very surprising picture. And we can even discover a tenbagger in the 5-year view. Which would be by far the Japanese sporting goods manufacturer Asics $7936 (+2,14%) would be.

5-year performance

Asics +1078.79%

Anta +84.53%

Adidas. +27,55%

Nike. +1,72%

The other three manufacturers lag far behind.

$ADS (-0,28%)
$2020 (+1,36%)
$NKE (-0,18%)

But that was in the past, so I have listed the multiples in an Excel file for comparison.

Here I notice that Adidas is ahead in terms of earnings growth, and is therefore even below Nike in terms of the forward P/E ratio. Although the current P/E ratio for Adidas is the highest and would not be a buying argument for many.

I am impressed by the high EBIT margin of the Chinese manufacturer Anta, which has managed to catch up with adidas in terms of profit despite lower sales.

Of course, this immediately raises the question of the working conditions under which production may take place here. But that would probably be a separate topic.

My dears, which is your favorite, perhaps you will now shuffle the cards again. And would anyone have expected this performance from the Japanese, will it perhaps continue here?

Your opinion is very important to me, let's discuss.

The Puma $PUM (-0,34%) share has lost well over three quarters of its value since its peak a good three years ago. Following a weak forecast for the current year, the share price fell by a further 22 percent to 22.16 euros at the start of trading on Wednesday.

The reasons:

1. sales are growing, but slowly

2. the brand needs to be positioned at a higher level

3. complex structures and outdated IT

4. the share price is falling and falling

Among other things, a shoe that is supposed to make Puma "cool" and attractive again is now supposed to help: "Speedcat"

The now 25-year-old shoe with a flat sole is said to be all the rage in Asian pioneer markets such as South Korea. The successes that Adidas $ADS (-0,28%) is currently achieving with the retro bestseller "Samba" , Puma wants to inherit with "Speedcat".

Source (excerpt): Handelsblatt & Welt

The analyst conference of Adidas ($ADS (-0,28%) ) highlighted a successful 2024 and provided insights into the strategic priorities and financial targets for 2025 and beyond.

CEO Bjørn Gulden began by highlighting the importance of sport to the Adidas brand and emphasized that 2024 had been a year of revival, supported by major events such as the EURO and COPA . He was particularly proud of the success in soccer, including jersey sales during the EURO in Germany. The Special Olympics were also highlighted as a special, emotional highlight that reflects Adidas' values.

Gulden also presented the top shoe models of the yearfirst and foremost the "Terrace" shoes such as Samba, Gazelle and Spezial, which have contributed significantly to the brand's appeal. He hinted that "low profile shoes and lifestyle running models will gain in importance in the future. In addition, the importance of lifestyle running was also emphasized. The scaling of the Superstar model is also to be driven forward. Also worth mentioning is the cooperation with the Formula 1 team from Mercedes-AMG PETRONAS.

CFO Harm Ohlmeyer supplemented the presentation with detailed insights into the financial figures. He emphasized the strong sales growth of 12 % and the improved gross margin of 50.8 %. Particular emphasis was placed on the 400 % increase in operating profit to EUR 1.337 billion was particularly emphasized.. Ohlmeyer also referred to the the gradual increase in sales forecasts over the course of the year and emphasized that Adidas had exceeded its promises.

In the Q&A section that followed, the analysts had the opportunity to ask specific questions. Here is a summary of the most important points:

Wholesale: One analyst asked about possible pull-forward effects in the wholesale channel in Q4 and their impact on Q1 2025. Gulden denied this and emphasized that the strong strong growth was based on actual orders and reorders. Regarding the wholesale figures in Europe he was optimistic, but conceded that many retailers are struggling with volatile demand.

Share buybackAnother focus was on the prospect of a prospect of a share buyback. Ohlmeyer made it clear that the priority was investment in the operating businessfollowed by the dividend payment. A share buyback will 2026 at the earliest at the earliest if the economic situation normalizes.

Competitive environmentGulden expressed his relaxed about the competition and sees no immediate threats. However, he conceded that the development of inflation and the retail market in the USA harbor uncertainties.

Gross margin: One analyst wanted to clarify the gross margin for 2025 estimate. Ohlmeyer emphasized that currency fluctuations play a role, but was confident confident of exceeding the 2024 margin (50.8%).

Terrace shoes: There was great interest in the "Terrace" shoe collection. Gulden explained that the models Special, Gazelle and Samba models are in different phases of the market and therefore are not managed globally, but on a market-specific basis. He emphasized that Adidas is in a position to fill the Adidas is able to fill the shelves with a wide range of classic and running shoes.

Marketing model: Gulden confirmed the target of investing 12 % of sales in marketingbut emphasized the importance of investing in smaller sportsto promote brand brand credibility and innovation.

SG&A costs: One analyst discussed the SG&A costs (selling, general and administrative costs) and asked whether savings were possible. Gulden confirmed that that there would be a stronger focus on efficiency and cost reduction in future. would take place. Ohlmeyer added that the one-off costs of EUR 200 million from 2024 would not be repeated and that the reduction in complexity in the company would lead to further savings. will lead to further savings.

USA business: Gulden confirmed the goal of achieving double-digit growth in the USA. However, he conceded that the market a particular challenge due to the strong competition.

Production flexibility: In response to the question of production flexibility Gulden replied that Adidas was able to increase its footwear production by 45% last year. Thanks to the good relationships with suppliers, a high degree of flexibility is given.

Full price sell-through: One analyst asked about the full price sell-through (selling at full price) and the potential for further improvements. Gulden could not give exact figures, but emphasized that Adidas had more than halved its discounts in its own channels.

Outlook Q1 2025: In conclusion, after the start of business in the first quarter of 2025 was asked. Gulden confirmed that the double-digit growth so far so far. However, Ohlmeyer pointed out that in March last year that Yeezy products were still being sold in March last yearwhich makes the comparison more difficult.

The Adidas analyst conference conveyed a positive picture of the company. The strategic realignment seems to be bearing fruit and the financial performance has improved significantly. I was particularly impressed by the the clear focus on the Adidas brand, the strengthening of the sports segment and the successful implementation of the "Terrace" strategy.

Goldman lowers target for Adidas

The US investment bank Goldman Sachs has lowered its target price for Adidas $ADS (-0,28%) from 280 to 270 euros and left the rating at "Neutral". Analyst Richard Edwards has revised his operating earnings estimates for 2025 and 2026 slightly downwards following the recently published quarterly figures. These adjustments are the result of earnings that did not quite meet expectations. In addition, the risk-free interest rate in its valuation model has been raised, which has also contributed to analysts becoming more cautious. At Adidas, it remains to be seen how the company will react to these new challenges and whether it can succeed in consolidating or even expanding its own market position.

Relief Therapeutics talks ended

In a surprising turn of events, talks about a merger between Relief Therapeutics and Renexxion have been terminated. The biopharmaceutical company has announced in a recent press release that the negotiations have not led to a satisfactory outcome. Relief Therapeutics is known for its innovative therapies, which have attracted considerable interest in the healthcare industry. The termination of these discussions could have far-reaching implications for the company's future strategy and growth. It remains to be seen how Relief Therapeutics plans its next steps and whether other partnerships may be on the horizon to further expand its product range.

Zalando wants to continue its growth course

The online retailer Zalando $ZAL (-2,72%) is optimistic and expects further growth in sales and operating profit in the current year. The company plans to achieve between four and nine percent more sales and is targeting an increase in adjusted earnings before interest and taxes (EBIT) to between 530 and 590 million euros. These forecasts are slightly above analysts' expectations and reflect solid growth. Last year, Zalando already recorded sales of just under 10.6 billion euros, which corresponds to an increase of over four percent. The operating result also rose by an impressive 46 percent to 511 million euros. The positive growth forecast has encouraged investors, which is reflected in a pre-market rise in Zalando shares of up to 1.99 percent. It will be exciting to see how Zalando can realize its ambitious goals and which strategies will be used to achieve them.

Sources:

https://www.finanzen.net/nachricht/aktien/analyse-flash-goldman-senkt-ziel-fuer-adidas-auf-270-euro-neutral-14295811

https://www.finanzen.net/nachricht/aktien/relief-therapeutics-aktie-gespraeche-ueber-fusion-mit-renexxion-beendet-14295853

https://www.finanzen.net/nachricht/aktien/zuwaechse-zalando-aktie-profitiert-zalando-strebt-weiteres-umsatz-und-gewinnwachstum-an-14295718