Nike stock tripled when it dominated road running the way adidas is dominating right now. Yet adidas gets no love from investors. Its stock is trading below the pandemic bottom and it keeps falling.
Margin trajectory has been the cleaner story here. Wholesale order book reads better than sentiment for sizing this one. Curious how you weight brand momentum against China comp risk.
Haven't looked into China specifically. but I would assume sales would benefit there as well if the adidas brand improves globally.
Aside from the adidas brand, interest rates are IMO the biggest hold back for Western consumer brand companies. Once they come down, discretionary spending will improve and companies like adidas will surprise positively on both revenue and margins.
Margin trajectory has been the cleaner story here. Wholesale order book reads better than sentiment for sizing this one. Curious how you weight brand momentum against China comp risk.
Would you mind clarifying what you mean by China comp risk?
China comps. Year over year same store sales in Greater China. Soft prints there have masked global brand momentum twice in the last 18 months.
Haven't looked into China specifically. but I would assume sales would benefit there as well if the adidas brand improves globally.
Aside from the adidas brand, interest rates are IMO the biggest hold back for Western consumer brand companies. Once they come down, discretionary spending will improve and companies like adidas will surprise positively on both revenue and margins.
I learnt about marathons, but Nike and Adidas both went up when Nike was winning marathons. I suspect another explanation
Nike went up more though during those years. Certainly more than one driver though. Check out my Nike article. :)