Adidas is one of the world’s most recognised sportswear manufacturers. It’s the biggest sportswear brand in Europe and the second biggest on the planet after Nike. Founded by entrepreneur, Adolf Dassler, Adidas was originally founded to supply spiked running shoes suitable for a host of athletics events.
It was first established under the name Gebrüder Dassler Schuhfabrik, before rebranding to Adidas in August 1949. This decision was taken due to a fallout between Dassler and his brother, Rudolf, with the latter departing the company to found a rival brand, Puma. The iconic three stripes of the Adidas brand are now unmistakable worldwide. In 2021, Adidas turned over more than €21 billion in sales, with a net income of €2.11 billion.
In terms of the all-time growth of the Adidas (ETR: ADS) share price, it is up approximately 196% as of December 2022. However, that doesn’t tell the whole picture of the value of Adidas stock in recent years. In fact, between 2015 and 2020, this was a significant boom period for Adidas investors. The price of Adidas stock soared from €61.00 to €313.00, representing a five-fold return in as many years.
The breakout of the Covid-19 pandemic saw mass panic surrounding the Adidas share price. It fell from €309 in January 2020 to €188 in April 2020. Although it recovered strongly during H2 2020, Adidas stock has been hugely bearish since the end of 2021. That’s due largely to a weakening in its European and Chinese sales, with the latter’s “deteriorating traffic trend” leading to Adidas cutting its sales guidance for a second time.
In terms of Adidas’ major competitors in the sportswear market, Nike is the outright powerhouse. With revenues of $46.7 billion, Nike is the most valuable investor-owned sportswear brand on the planet. It’s also worth mentioning the brand of Rudolf Dassler, and Adolf’s brother, Puma. This German sportswear brand has posted revenues of $8 billion, positioning it ahead of Canada-based sportswear brand Lululemon Athletica ($6.3 billion) and Japanese brand Asics Corp ($3.6 billion).
Looking beyond revenues, Under Armour is another major player in the casual sports apparel market. North America is Under Armour’s biggest target market. It’s a similar story with New Balance, which has a manufacturing presence in the US and the UK.
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What are the key drivers affecting Adidas's stock price?
Adidas's stock price is heavily influenced by the performance of its sport apparel industries. Factors such as customer demand, market trends, technological innovation, and economic conditions are all key drivers that can affect Adidas's stock price.
Changes in customer preferences and spending habits can cause fluctuations in Adidas's stock price, as it is highly dependent on consumer demand for its products. Trends such as fashion or technological advancements can affect how customers view Adidas products and subsequently how much they are willing to pay for them. Innovative technologies such as wearable technology or improved manufacturing processes can give Adidas a competitive edge over other brands, which can lead to an increased demand for their products and a higher stock price. Changes in global economic growth, interest rates, and inflation can influence Adidas's stock price.
Who owns most Adidas shares?
Institutional investors own the vast majority at 81%, while private investors own 19%. Of the institutional investors that own Adidas stock, Manning & Napier Advisors LLC owns the most, 0.05%, which amounts to 173,087 shares; followed by BBR Partners LLC at 0.05% and 168,700 shares; Pacer Advisors Inc at 0.01% with 43,404 shares; and Todd Asset Management LLC at 0.01% with 44,000 shares.
The remaining 18% of Adidas' stock is owned by private individuals and organizations, including members of the founding families, employees, pension funds, government agencies, charitable organizations and other individual shareholders.
Do Adidas shares pay dividends?
Adidas pays dividends to shareholders every year. The amount paid has varied in recent years, with a high of 3.35€ per share paid out in 2018 and a low of 0.80€ per share paid out in 2010. For 2020, Adidas declared a dividend payment of 3.00€ per share, which paid on May 18, 2021. This followed by a payment of 3.30€ per share in May 17, 2022. The dividend yield of Adidas shares currently stands at 2.34%. Investors can expect to receive regular dividends from the company each year and should factor this into their investment decisions when considering if Adidas is a suitable stock for their portfolio.
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