adidas Stock (OTC:ADDYY), Trade Ideas

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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. Adidas sells its products in more than 160 countries through nearly 1,900 owned retail stores, 15,000 mono-branded franchise stores, 150,000 wholesale doors, and owned e-commerce that is available in 67 countries. The company was founded in 1949 in Germany.

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Hibbett&#39;s 18% surge follows JD Sports&#39; acquisition deal, marking a strategic move in the athletic retail sector.

Why Is Athletic-Inspired Fashion Retailer Hibbett Stock Jumping Today?

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In an unscheduled announcement, Adidas AG (OTC: ADDYY) (OTC: ADDDF) raised its 2024 profit outlook after a better than expected first quarter. The good news come a month after the German sportswear giant posted its first annual loss in m

Still-In-The-Woods Adidas Provides Glimpse Of Recovery With A Lifted Guidance

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Adidas AG reported preliminary results for the first quarter of 2024, with an 8% increase in currency-neutral revenues. In euro terms, revenues grew 4% to €5.458 billion in the quarter.

Adidas Boosts Outlook On Strong Q1 Results: Details

adidas AG

Hibbett, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HIBB#NASDAQ">HIBB</a>) shares are trading higher by 18% in the&nbsp;<a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener">premarket session on Tuesday</a>.
Hibbett announced a definitive agreement in which&nbsp;JD Sports Fashion PLC&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/JDSPY#OTC">JDSPY</a>)&nbsp;will acquire Hibbett for $87.50 per share in cash, representing an aggregate&nbsp;enterprise value of approximately $1.1 billion.
Per share price represents a 21% premium to the April 22, 2024, closing price.&nbsp;
Last month, JD Sports anticipated a boost in the lackluster market from the Euro soccer championships, the&nbsp;Paris Olympics, and new styles of trainers and tracksuits featuring brands like&nbsp;Nike, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>),&nbsp;Adidas AG&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/ADDYY#OTC">ADDYY</a>), and HOKA, Reuters reported.
Under the terms of the definitive merger agreement, Hibbett has agreed to suspend the payment of dividends on its common stock and&nbsp;the&nbsp;purchase&nbsp;of&nbsp;shares under its existing Stock Repurchase Program through the transaction&#8217;s closing.
&#8220;Today&#8217;s announcement is a true testament to all that our Hibbett &#x7C; City Gear teams have built over the years and reinforces the strength of our brands, our close relationships with our vendor partners, and our team of dedicated colleagues across the country,&#8221; said Mike Longo, President and Chief Executive Officer of&nbsp;Hibbett.
The deal also represents a 29% premium to&nbsp;the&nbsp;120-trading day volume weighted average&nbsp;price&nbsp;of Hibbett.
&nbsp;&#8220;We&#8217;re thrilled to acquire Hibbett &#x7C; City Gear, combining two of the most respected athletic retail brands in the United States, as we continue&nbsp;to strategically expand&nbsp;our global multi-brand platform,&#8221; said Régis Schultz, Chief Executive Officer of JD Sports.
Following the&nbsp;closing of the transaction, Mike Longo will continue to serve as President and Chief Executive Officer&nbsp;and&nbsp;Jared Briskin will take on the role of Chief Operating Officer of Hibbett.&nbsp;
The transaction&nbsp;is expected&nbsp;to close in the second half of 2024.&nbsp;
Hibbett will maintain its corporate headquarters in Birmingham, Alabama.
Price Action: HIBB shares are trading higher by 18.6% to $86.00 premarket on the last check Tuesday.
Photo via Wikimedia Commons

In an unscheduled announcement, Adidas AG (OTC: <a class="ticker" href="https://www.benzinga.com/stock/addyy#OTC">ADDYY</a>) (OTC: <a class="ticker" href="https://www.benzinga.com/stock/adddf#OTC">ADDDF</a>) raised its&nbsp;2024 profit outlook after a better than expected first quarter.&nbsp;The good news come a&nbsp;month after&nbsp;the German sportswear giant posted its first annual loss in more than three decades and warned sales in North America will fall again due to the struggle of U.S. retailers with high inventory levels. Adidas has also been battling to restore its vitality after&nbsp;a costly split from Kanye West in October 2022&nbsp;and&nbsp;suspending sales of the highly profitable Yeezy sneaker line.
<h3>Adidas Provided Hope Of Recovery</h3>
The German sportswear giant&nbsp;now expects full-year operating profit of about&nbsp;$744 million&nbsp;or&nbsp;700 million euros&nbsp;, after previously guiding for&nbsp;500 million euros.
At the very least, Adidas shares have staged a recovery, outperforming&nbsp;even&nbsp;Nike&nbsp;Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nke#NYSE">NKE</a>)&nbsp;since&nbsp;the new&nbsp;CEO Bjorn Guldentook over.&nbsp;Gulden found that&nbsp;2023 ended better than&nbsp;what was expected at the&nbsp;beginning of the year, although this performance is certainly not good enough. Back in March, Gulden warned that the brand&rsquo;s weakness in North America will continue as&nbsp;Adidas&nbsp;expects&nbsp;sales to fall by around 5% this year&nbsp;due to overstocked stores and lower demand. In 2023, Adidas recorded a YoY sales&nbsp;drop of&nbsp;16%&nbsp;in North America, while fourth quarter alone posted a&nbsp;21%&nbsp;YoY drop. But, throughout the year, Gulden has been clearing the stock&nbsp;through&nbsp;outlet stores&nbsp;and lowered inventories by 24% or&nbsp;1.5 billion euros.&nbsp;Adidas is&nbsp;hoping to restore its&nbsp;market share from rivals&nbsp;like&nbsp;Nike,&nbsp;even as consumers&#39; overall appetite for sportswear&nbsp;is declining,&nbsp;with even&nbsp;Nike&nbsp;shedding 2% of its workforce in February. Therefore, the latest announcement provided the much-needed good news for the German sportswear giant as Gulden&#39;s efforts to re-energize the company have started to pay off.
Nike is missing its bold and disruptive innovation.
Last Friday, Nike&nbsp;CEO John Donahoe&nbsp;blamed remote work for the slowdown of innovation that is the DNA of Nike&rsquo;s brand. With employees working from home for more than two years now, developing a boldly disruptive product is tough to develop through Zoom.&nbsp;But Donahoe assured that&nbsp;Nike&rsquo;s innovation pipeline is as strong as ever&nbsp;as the sports company fights to protecting its market share with its restructuring plan announced in December. Over the next three years, Nike aims to lower&nbsp;costs by about $2 billion&nbsp;as it embraces for softer demand in the quarters ahead.&nbsp;
DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

Adidas AG&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/ADDYY#OTC">ADDYY</a>) reported preliminary&nbsp;<a target="_blank" href="https://www.adidas-group.com/en/media/press-releases/adidas-delivers-better-than-expected-performance-in-the-first-quarter-and-increases-its-full-year-guidance" rel="noreferrer noopener">results&nbsp;</a>for the first quarter of 2024, with an 8% increase in currency-neutral revenues. In euro terms, revenues grew 4% to €5.458 billion in the quarter.
The company's gross margin improved 6.4% points to 51.2% during the quarter compared to 44.8% last year.
Operating profit marked a significant jump to €336 million from €60 million last year.
The latest Yeezy drop generated revenues of around €150 million and an operating profit of around €50 million in the first quarter.&nbsp;
The remaining Yeezy inventory would lead to additional sales of about € 200 million and no further profit contribution during the remainder of the year.
Guidance: Adidas increased its full year revenue guidance and sees currency-neutral revenues to increase at a mid- to high-single-digit rate in 2024 from the previous mid-single-digit rate growth.
The German footwear maker also increased its operating profit guidance to around €700 million from around €500 million.
Adidas expects unfavorable currency effects to weigh significantly on its profitability in 2024.
Image by chinnian on Flickr

Adidas Q1 2024 Revenue EUR$5.46B, Gross Margin 51.2%

Trading Ideas

Nike Shares Move Higher; Adidas Reports Quarterly Results

Nike Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) will outfit all of Germany&#8217;s&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/23/12/36154560/sportswear-brands-go-to-the-olympics-in-2024-paris-games-to-showcase-new-brands" rel="noreferrer noopener">national soccer teams</a>&nbsp;starting in 2027, marking the end of Germany&#8217;s historic 70-year partnership with&nbsp;Adidas AG&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/ADDDF#OTC">ADDDF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ADDYY#OTC">ADDYY</a>).&nbsp;
German Soccer Federation&#8217;s (DFB) announcement ushers in a new era with an agreement spanning from 2027 to 2034, surprising many by choosing Nike over its traditional ally, Adidas.&nbsp;
Germany&#8217;s men&#8217;s team, which will utilize Adidas&#8217; headquarters as its base for the upcoming European Championship hosted by Germany this summer, found Adidas caught off guard by the DFB&#8217;s switch to its primary competitor, AP News&nbsp;<a target="_blank" href="https://apnews.com/article/germany-nike-adidas-gear-48140a6b97e2ca66cc72217f9921310c" rel="noreferrer noopener">reports</a>&nbsp;
Germany&#8217;s national football teams have historically donned Adidas gear, contributing to their success in securing four World Cup titles between 1954 and 2014.&nbsp;
The association with Adidas was extended for four more years in 2019, ensuring collaboration until the end of 2026.
The decision to switch to Nike was motivated by the substantial financial offer and Nike&#8217;s vision for promoting amateur sports, women&#8217;s soccer, and the sustainable development of the sport in Germany.&nbsp;
Adidas acknowledged being informed about the DFB&#8217;s decision to switch suppliers from 2027 onwards.&nbsp;
This transition comes as Germany, home to the world&#8217;s largest football association with over seven million members, prepares to host the Euro 2024 tournament from June 14 to July 14, showcasing its prominent role in the global football community.
Adidas faced challenges in 2023, dropping the Yeezy brand after controversial remarks by Kanye West, resulting in a $1.3 billion sales hit. However, the company is making a comeback with better-than-expected third-quarter results and a shift in focus back to sports, led by CEO Bjorn Gulden.&nbsp;
The sports apparel market, valued at around $200 billion annually, anticipates a boost in 2024 with the Euro 2024 football championship and the Paris Olympics.&nbsp;
Nike&#8217;s stock has gained 11% in the last six months. Investors can gain exposure to the stock via&nbsp;SPDR Select Sector Fund &#8211; Consumer Discretionary&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) and&nbsp;Hennessy Stance ESG ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STNC#NYSE">STNC</a>).
Price Action:&nbsp;NKE shares traded lower by 7.12% at $93.64 premarket on the last check Friday.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/03/37889120/these-analysts-cut-their-forecasts-on-nike-following-q3-results" rel="noreferrer noopener">These Analysts Cut Their Forecasts On Nike Following Q3 Results</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

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Nike Scores Big with Germany's National Soccer Teams, Ending Adidas' 70-Year Legacy

Adidas AG&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/ADDYY#OTC">ADDYY</a>) reported a 2%&nbsp;<a target="_blank" href="https://www.adidas-group.com/en/media/news-archive/press-releases/2024/adidas-performs-better-than-expected-in-transition-year-2023/" rel="noreferrer noopener">decline&nbsp;</a>in currency-neutral revenues for fourth-quarter FY23. In euro terms, revenues declined 8% to €4.812 billion in the quarter, including the negative translation impact of around €300 million from unfavorable currency movements.
Also the lack of any Yeezy business weighed on the year-over-year comparison in an amount of around €100 million.
Despite the significant Yeezy impact, currency-neutral footwear sales were up 8% in the fourth quarter driven by strong double-digit growth in Originals and Skateboarding.&nbsp;
Related:&nbsp;<a target="_blank" href="https://www.benzinga.com//node/34785030" rel="noreferrer noopener">Adidas CEO Speaks On Ye&#8217;s Antisemitic Remarks: &#8216;I Don&#8217;t Think He Meant What He Said&#8217;</a>
Apparel revenues declined 13% and that of accessories decreased 1%.
Currency-neutral sales in North America decreased 21%, EMEA declined 7%, Asia-PAcific were flat, Latin America increased 1% and Greater China jumped 37%.
The gross margin for the quarter expanded by 550 basis points to 44.6%, driven by a better business mix, lower freight costs, as well as reduced discounting.
Adidas recorded an operating loss of €(377) million compared to a loss of €(724) million last year.
Dividend: Adidas&#8217; executive and supervisory board will recommend paying a stable dividend of € 0.70 per dividend-entitled share to shareholders at the Annual General Meeting on May 16, 2024.
Outlook: For FY24, Adidas expects macroeconomic challenges and geopolitical tensions to persist. So it sees currency-neutral sales to grow at a mid-single-digit rate.
Adidas said growth in the first half will be negatively impacted by initiatives to bring down elevated inventories in the North American market.
Unfavorable currency effects are projected to weigh significantly on the company&#8217;s profitability in 2024.
Taking the expected translational and transactional FX headwinds into account, Adidas expects to generate an operating profit of around €500 million in 2024.
Price Action: ADDYY shares closed higher by 1.91% at $105.35 on Tuesday.
Image by chinnian on Flickr

Adidas Kicks Off 2024 With Optimism: Targets Growth Amid Inventory And Currency Challenges

Adidas Expects 2024 Currency-Neutral Sales To Grow At Mid-Single-Digit Rate; Sales ~€250M

Adidas Decides Not To Write Off Most Of Its Yeezy Inventory

Adidas Says Discontinuation Of Yeezy Business Had Negative Effect On Top-Line Development During Year; Represented Drag Of Around €500M YoY

Adidas Sees Prelim. FY23 Currency-Neutral Revenues Flat Vs Prior Year-Level; Sales Down 5% To €21.427M

<a href="https://www.fastcompany.com/91003553/adidas-and-apple-may-be-looking-to-leave-china-but-mcdonalds-and-starbucks-are-expanding#:~:text=%E2%80%9CWe%20want%20to%20continue%20a,10%20years%20in%20military%20technology.%E2%80%9D">https://www.fastcompany.com/91003553/adidas-and-apple-may-be-looking-to-leave-china-but-mcdonalds-and-starbucks-are-expanding#:~:text=%E2%80%9CWe%20want%20to%20continue%20a,10%20years%20in%20military%20technology.%E2%80%9D</a>
There's been no shortage of tough news for China's economy as some of the world's biggest brands consider or take action to shift manufacturing to friendlier shores at a time of unease about security controls, protectionism and wobbly relations between Beijing and Washington. Count Adidas, Apple and Samsung among those looking elsewhere. But as a tumultuous 2023 for the Chinese economy comes to a close, there has been at least one bright spot for Beijing when it comes to foreign investment: American fast-food chains have decided a market of 1.4 billion people is simply too delicious to pass up. KFC China's parent company opened its 10,000th restaurant in China last month and aims to have stores within reach of half of China's population by 2026. McDonald's is planning to open 3,500 new stores in China over the next four years. And Starbucks invested $220 million in a manufacturing and distribution facility in eastern China, its biggest project outside the U.S. This is surely not what Chinese President Xi Jinping had in mind as he made the case to American CEOs about the upside of China's "super-large market" last month while he was in San Francisco for a summit of world leaders. The investments in fast food and other consumer goods, while Washington is curbing exports of computer chips and other advanced technology, don't fit into China's own blueprint for modernizing its economy. "As you try to interpret the signals from McDonald's and Starbucks" and other chains, says Phil Levy, chief economist at the supply chain management firm Flexport, "note what the industries are: These are not high-tech burgers." And while some U.S. companies are increasing investments in the world's second-largest economy, overall foreign investment began falling this year. In the July-September quarter, net foreign direct investment in China sank to a deficit of $11.8 billion, the first quarterly deficit since Beijing began publishing the data in 1998. As tensions simmer between China and its Western trading partners, many multinational companies are shifting investments to other places, such as Southeast Asia or India, or repatriating their earnings. That has sapped China of a key engine when its economy has yet to fully recover from the disruptions of the pandemic and a property industry crisis that has been a drag on growth. Beijing puts some of the blame on U.S. government policies. Commerce Ministry spokesperson Shu Jueting said recently, "The U.S. side has repeatedly politicized economic, trade and technology issues and overstretched the concept of security, abused export control measures, and restricted trade and investment in China by its own enterprises, which is forcing enterprises to give up opportunities in the Chinese market and opportunities for win-win cooperation." A survey released in September by the U.S.-China Business Council, which represents American companies in China, suggested that the uncertainty has taken a toll: 43% of its members said China's business environment had deteriorated in the past year, and 83% said they were less optimistic about China than they had been three years ago. Twenty-one percent said they were investing fewer resources in China, versus just 10% who were investing more. Surveys of European and Japanese companies have shown similar results. While China's market is gigantic, it's ailing. Unemployment among young Chinese rose to over 20% by June, the last time the government released that data. Housing prices are falling and the stock market is down nearly 15% since the summer. That's left many Chinese feeling nervous about spending. Still, bullishness for China as other industries try to de-risk and detangle from Beijing may be a profit-increasing strategy for the fast-food industry. "We believe there is no better time to simplify our structure, given the tremendous opportunity to capture increased demand and further benefit from our fastest-growing market's long-term potential," McDonald's CEO Chris Kempczinski said as the Chicago-based company announced in November it was increasing its minority 20% ownership of its McDonald's licensed stores in China, Macau and Hong Kong to 48%. Burgers and lattes don't raise the sorts of friction that more high-tech industries have in the complicated U.S.-China relationship. Those strains have persisted under the presidency of Joe Biden, who took office vowing to do more to counter China's expanding military clout and its menacing of neighbors, to improve the country's treatment of Uyghur and other ethnic minorities, and to crack down on intellectual property theft. Relations hit a low point in February when Biden ordered a Chinese spy balloon that traversed the continental United States to be shot down. Beijing, which claims self-governed Taiwan as its own territory, also protested a stopover in the U.S. by the island's president, Tsai Ing-wen, earlier this year. China answered fresh U.S. controls on exports of advanced computer chips and the technology to make them with limits of its own on exports of vital commodities like graphite, gallium and germanium, all metals used in making semiconductors, solar panels, missiles and radar. The relationship appears to be stabilizing somewhat as 2023 winds down, highlighted by last month's Biden and Xi meeting outside San Francisco. But since then, Biden's top advisers have said there are no plans to shift the strategy of tightening regulations and blocking U.S.-based high-tech investments in China, citing the need to safeguard national security. Both former President Donald Trump, the 2024 GOP presidential front-runner, and Biden have worried about depending on China, a potential adversary, for supplies of critical materials used in many high-tech products. Both have sought to reduce America's reliance on Chinese factories and have encouraged companies to shift away from China to other countries — so-called "friend-shoring." Still, Biden administration officials have said they don't want to see a total decoupling of the world's two biggest economies. "De-risking, yes. Decoupling, no," Nicholas Burns, the U.S. ambassador to China, said at a recent event in Washington. "We want to continue a major trade and investment relationship with China, just not … in the realm that might help them leapfrog over us sometime in the next 10 years in military technology." Rosemary Coates, executive director of the nonprofit Reshoring Institute, noted that decisions to expand or retrench are relatively easy for a company like McDonald's or its fast-food rivals. Franchises "can be opened or closed," Coates said. "It's not like you're investing in an auto plant or some kind of machine shop." China's vast market is vital for many foreign companies: At their annual investors day gathering this month, McDonald's executives noted that 70 million of the 150 million customers active in its customer loyalty program are in China. KFC China says growth in its new outlets has averaged more than 22% over the last five years. The chain Popeyes Louisiana Kitchen relaunched its brand in China in August with a flagship restaurant in Shanghai and plans to open 1,700 stores over the next 10 years. But for all the promise of China's huge market, U.S. businesses have other reasons to think twice about expanding in China. In July, the U.S. recommended Americans reconsider traveling to China because of arbitrary law enforcement and exit bans and the risk of wrongful detentions. Commerce Secretary Gina Raimondo has warned Chinese leaders that U.S. businesses might stop investing in their country if they do not address complaints about worsening conditions due to raids on firms, unexplained fines and unpredictable official behavior. While insisting that China is keen to have foreign investment, Beijing has given no indication it might change trade, market access and other policies that irk Washington and its other trading partners. "Where do you draw the line?" asked Levy, a former White House economic adviser in George W. Bush's administration. "Someone might say: For sourcing sensitive computer chips, this has to be done in a place I really trust. … The other extreme is: We're OK selling them lattes and burgers. But where do you draw the line for the stuff in between — say, automotive parts? What about ball bearings?"

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"Adidas And Apple May Be Looking To Leave China, But McDonald's And Starbucks Are Expanding" - FastCompany

One of the most searched items on Google of 2023 was the Middle East conflict involving the Hamas terrorist group and the regions of <a href="https://www.benzinga.com/news/23/12/36184608/top-10-google-searches-for-events-people-in-2023-war-in-israel-titanic-sub-hurricanes-shootings-dama">Israel and Gaza.</a>
Israel is losing its sponsor for its soccer team, but it likely has nothing to do with the current war.
What Happened: Sportswear company PUMA SE (OTC:<a class="ticker" href="https://www.benzinga.com/stock/PUMSY#OTC">PUMSY</a>) is ending its sponsorship of Israel's soccer team, a move that comes as Israel is the topic of the <a href="https://www.benzinga.com/topic/israel">ongoing war in the region.</a>
Puma said the decision had nothing to do with the war or past boycotts of the sponsorship, according to a <a href="https://www.ft.com/content/93014af0-80bc-4b53-bb4a-a621d8c932b0">report </a>from the Financial Times.
Puma has been the sponsor of the Israeli soccer team since 2018 and its current sponsorship will run through 2024 before expiring.
Boycotts against Puma over the sponsorship began in 2018 with activists stating the sportswear company was sponsoring Israeli clubs in the controversial West Bank territory, which Puma denied.
Puma was attacked by the pro-Palestinian Boycott, Divestment, Sanctions (BDS) movement, which is now taking credit for the sponsorship ending. The BDS <a href="https://www.benzinga.com/government/21/07/22048169/ben-jerrys-joins-bds-movement-to-boycott-west-bank-and-east-jerusalem">previously targeted</a> Ben &amp; Jerry's, an ice cream brand owned by Unilever PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UL#NYSE">UL</a>). Ben &amp; Jerry's decided to stop selling its ice cream in the West Bank after pressure.
The Israel Football Association has denied the BDS's claim it was responsible, stating it had an option to renew with Puma through 2026, but decided in September it would not after failing to reach an agreement on the terms and conditions of a renewal.
"The decision is based solely on business reasons," Puma communications chief Kerstin Neuber said, as <a href="https://apnews.com/article/puma-israel-soccer-jerseys-7d49bef2b098c1494925cbe669244903">shared </a>by the Associated Press.
Puma said the decision to not renew with Israel was reached in 2022 as part of the company's "fewer-bigger-better strategy."
Israel's soccer team has had minimal success qualifying for major tournaments, failing to make a Euro tournament and the 1970 World Cup its lone appearance in the major soccer tournament.
FIFA currently ranks Israel as the 75th best team out of 200 teams worldwide.
Israel is currently in the playoffs for qualification in the <a href="https://www.benzinga.com/general/sports-betting/23/12/36166570/sports-betting-weekly-5-bonus-bet-wins-48k-college-football-playoff-set-49ers-dominate-eag">Euro 2024 soccer tournament</a>. Israel will face off in a semifinal against Iceland in March 2024. The winner will meet the winner of Bosnia and Herzegovina and Ukraine. The winner of the four teams will become the last team in Group E of the 2024 Euro, joining Belgium, Slovakia and Romania.
A berth in the Euro 2024 could increase the spotlight on the Israel soccer team and the Puma partnership ending, with Fox Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FOX#NASDAQ">FOX</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FOXA#NASDAQ">FOXA</a>) having television rights to the tournament in the U.S.
Related Link: <a href="https://www.benzinga.com/news/23/12/36210141/un-calls-for-immediate-ceasefire-in-gaza-amid-rising-tensions-between-israel-and-us">UN Calls For Immediate Ceasefire In Gaza Amid Rising Tensions Between Israel And US</a>
Why It's Important: Puma is one of the largest sportswear companies in the world and has a prominent place in the soccer market. The company sponsors soccer players like Neymar Jr. (Brazil) and Christian Pulisic (USA).
The company also sponsors some of the biggest soccer clubs in the world, including Manchester City, AC Milan and Borussia Dortmund.
At the 2022 World Cup, Puma sponsored six of the soccer teams that were competing, which ranked third behind Nike Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) and Adidas AG-ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ADDYY#OTC">ADDYY</a>) with 13 and 7, respectively.
Puma currently <a href="https://about.puma.com/en/this-is-puma/our-sports/teamsport#:~:text=PUMA%20is%20the%20official%20partner,CONMEBOL%20Libertadores%20and%20CONMEBOL%20Sudamericana.">sponsors </a>the national soccer teams of Austria, Iceland, Czech Republic, Ghana, Ivory Coast, Senegal, Morocco, Egypt, Serbia and Switzerland, according to its website.
The sportswear company was previously the sponsor of Italy, which was its biggest deal, but lost out to Adidas in 2022 for the national team. Puma said it will announce a new soccer team partnership that is high-profile soon, according to a memo seen by the Financial Times.
The memo also said Puma will end its sponsorship with other national teams in the future due to commercial success and failure to qualify for international tournaments. The company will end its partnership with Serbia at the end of 2024 as well. Puma said it will "evaluate all other existing partnerships as well as any other upcoming opportunities to ensure we have a strong roster of national teams."
Read Next: <a href="https://www.benzinga.com/news/23/12/36084172/bernie-sanders-opposes-emergency-military-aid-to-israel-what-the-netanyahu-government-is-doing-is-im">Bernie Sanders Opposes Emergency Military Aid To Israel: &#8216;What The Netanyahu Government Is Doing Is Immoral&#8217;</a>

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Israel Loses National Soccer Team Sponsorship In 2024, Why Puma Said It Wasn't Because Of Boycotts, War In The Middle East

Adidas AG&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/addyy#OTC">ADDYY</a>) reported a 1% increase in currency-neutral&nbsp;<a class="editor-rtfLink" href="https://www.adidas-group.com/en/media/news-archive/press-releases/2023/adidas-reports-revenue-increase-in-the-third-quarter-underlying-b/" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">revenues&nbsp;</a>for the third quarter of FY23 to &euro; 5.999 billion, driven by growth in all regions except North America. In euro terms, the company&#39;s revenues declined 6%.
The second product drop of Yeezy inventory generated revenues of around &euro; 350 million in Q3, somewhat below the Yeezy sales generated in the prior year&#39;s quarter. As a result, excluding the Yeezy revenues in both years, <a href="https://www.benzinga.com/calendars/earnings">currency-neutral revenues increased 2% during the quarter.</a>
The revenue reflects the company&#39;s conservative sell-in approach aimed at reducing high inventory levels, improved sell-through and focus on full-price sales across own channels.
Footwear revenues grew 6% on a currency-neutral basis, reflecting double-digit growth in Adidas Originals as well as in the football and basketball categories. Apparel sales declined 6%, and Accessories revenues were down 3%.
The company&#39;s currency-neutral sales in wholesale declined 2% despite double-digit growth in Greater China and Latin America. At the same time, direct-to-consumer (DTC) revenues grew 5% versus the prior year.&nbsp;
Currency-neutral sales in North America declined 9%. Revenues in Greater China grew 6%, EMEA increased 2%, Asia-Pacific climbed 7%, and Latin America jumped 13%.
Gross margin expanded by 20 basis points to 49.3% versus 49.1% last year, mainly driven by reduced freight costs.
The company&#39;s operating profit amounted to &euro; 409 million with an operating margin of 6.8% versus 8.8% a year ago.
Basic EPS from continuing operations&nbsp;for Q3 was &euro; 1.40 compared to &euro; 0.34 last year.
Inventories are now down 23% to &euro; 4.849 billion versus &euro; 6.315 billion last year.
Also Read:&nbsp;<a href="https://www.benzinga.com/general/entertainment/23/11/35530731/adidas-banks-on-retro-sambas-to-fill-2b-void-after-yeezys-partnership-with-ye-falls-apart">Adidas Banks On Retro Sambas To Fill $2B Void After Yeezy&#39;s Partnership With Ye Falls Apart</a>
Outlook: For FY23, Adidas expects currency-neutral revenues to decline at a low-single-digit rate in 2023 (previously: decline at a mid-single-digit rate).&nbsp;
The company said elevated recession risks in North America and Europe as well as uncertainty around the recovery in <a href="https://www.benzinga.com/calendars/guidance">Greater China continue to exist.</a>
Adidas now expects a reported operating loss of around &euro;100 million in 2023 (previously: loss of &euro; 450 million).
Adidas CEO Bj&oslash;rn Gulden, said,&nbsp;&quot;We see the interest in our brand and products increasing in all markets and are now experiencing a visibly higher interest from retailers for the sell-in for our Fall/Winter 2024 range.&quot;
Price Action: ADDYY shares closed higher by 0.22% at $92.39 on Tuesday.
Photo Via Company

Sharp Inventory Reduction Pushes Adidas Revenue; Gets €350M Boost From Yeezy Sales

Athletic footwear maker&nbsp;Nike Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nke#NYSE">NKE</a>) has reportedly launched legal challenges against two of its industry competitors,&nbsp;New Balance&nbsp;and&nbsp;Skechers U.S.A., Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/skx#NYSE">SKX</a>), alleging that they have encroached upon patented sneaker technology.
New Balance and Skechers stand accused of utilizing Nike&#39;s &quot;Flyknit&quot; technology, a method of constructing the upper parts of athletic shoes, which Nike claims to have innovated for activities ranging from running to basketball, reported Reuters.
Nike has accused New Balance&#39;s athletic footwear from Fresh Foam, FuelCell and other lines, alongside Skechers&#39; Ultra Flex and Glide Step brands, might be incorporating elements of the patented technique.&nbsp;
Nike&#39;s has a history of defending the &quot;Flyknit&quot; patents, previously entangling with&nbsp;Adidas AG&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/addyy#OTC">ADDYY</a>) and&nbsp;Puma SE&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/pumsy#OTC">PUMSY</a>) in similar disputes. While those cases have found resolution through settlements, Nike&#39;s contest with&nbsp;Lululemon Athletica Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lulu#NASDAQ">LULU</a>) has not been resolved yet.
The report noted New Balance, headquartered in Boston, in its response to the allegation, said that it &quot;fully respects competitors&#39; intellectual property rights, but Nike does not own the exclusive right to design and produce footwear by traditional manufacturing methods that have been used in the industry for decades.&quot;&nbsp;
Nike&#39;s &quot;Flyknit&quot; utilizes high-strength fibers to craft uppers that offer support, flexibility, and ventilation while minimizing material waste.
The footwear giant has reportedly demanded financial reparations for the alleged patent breaches and has urged the courts to enforce a permanent injunction to prevent further infringement by New Balance and Skechers.
Price Action: NKE shares closed higher by 0.18% at $107.25 on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Via Company

LULU

Sneaker Showdown - Nike Targets New Balance And Skechers In Patent Suit: Report

The classic Adidas (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ADDYY#OTC">ADDYY</a>) Samba sneaker is the must-have shoe of the year, filling a significant&nbsp;void left by the collapse&nbsp;of the Yeezy partnership with Ye, formerly known as Kanye West.
As per the&nbsp;Wall Street Journal report, the Adidas Samba, a soccer shoe turned casual sneaker, is now sported by celebrities to sneakerheads. Adidas aims to capitalize on this trend to fill an estimated $2 billion-a-year gap created by the dissolution of its Yeezy partnership.
&#8220;We've&nbsp;been seeing this groundswell of&nbsp;excitement for retro sneakers globally,&#8221;&nbsp;said Torben Schumacher, general manager&nbsp;of Adidas Originals. The company is now increasing production of its retro models, potentially reaching&nbsp;a rate of 15 million&nbsp;pairs a year, according to CEO Bjørn Gulden.
See Also:&nbsp;<a href="https://www.benzinga.com/news/23/10/35490111/how-to-watch-apples-scary-fast-launch-event-m3-powered-imacs-macbook-pro-and-more-to-launch?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">How To Watch Apple&#8217;s Scary Fast Launch Event: M3-Powered iMacs, MacBook Pro And More To Launch</a>
Adidas has faced challenges in keeping up with the demand for the Samba sneaker, which has been selling out faster than the company can restock.
Despite its rich archive, Adidas has historically lagged behind rival Nike (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) in monetizing its back catalog. However, the company&nbsp;has launched its first global&nbsp;marketing campaign for terrace shoes, including the Samba, Gazelle, and Superstar styles.
Adidas&#8217; stock has seen a 30% rise this year, outperforming&nbsp;a 14% drop in Nike's. The company is set to&nbsp;update investors on its financial&nbsp;performance on Nov. 8.
The retro trend revival has been a boon for Adidas, which had forecasted&nbsp;a full-year loss of around&nbsp;$475 million for 2023 but&nbsp;now expects to lose closer&nbsp;to $105 million.
Read Next:&nbsp;<a href="https://www.benzinga.com/news/23/10/35408457/chatgpt-creator-sam-altman-raises-ai-anxiety-with-latest-prediction-involving-very-strange-outcomes?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">ChatGPT Creator Sam Altman Raises AI Anxiety With Latest Prediction Involving &#8216;Very Strange Outcomes&#8217;</a>
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Entertainment

Adidas Banks On Retro Sambas To Fill $2B Void After Yeezy's Partnership With Ye Falls Apart

Via <a href="https://elplanteo.com/">El Planteo</a>
The sneaker world is on the cusp of yet another upheaval. Adidas (OTC: <a class="ticker" href="https://www.benzinga.com/stock/addyy#OTC">ADDYY</a>), the renowned <a href="https://www.benzinga.com/topic/sports">sports</a> brand, has chosen to once again team up with &quot;<a href="https://elplanteo.com/estos-son-los-5-episodios-mas-drogones-de-los-simpsons/" target="_new">The Simpsons</a>,&quot; the animated series that has enchanted generations for over three decades. Together, they are introducing a new line of sneakers, including the <a href="https://elplanteo.com/adidas-los-simpson-sneakers/">Adidas Forum Low &quot;Living Room,&quot;</a> a design set to leave a lasting imprint in the footwear realm.
<h3>A Journey Through The Simpsons&#39; Living Room</h3>
The new &quot;Living Room&quot; model of the Adidas Forum Low pays homage to the most celebrated living room on TV. Its design captures the essence of this iconic setting where we&#39;ve watched Homer, Marge, Bart, Lisa and Maggie embark on countless escapades.
<img alt="Adidas The Simpsons" src="https://elplanteo-wordpress-staging.s3.sa-east-1.amazonaws.com/wp-content/uploads/2023/10/18115059/Screen-Shot-2023-10-18-at-11.49.50-500x335.png" style="height:418px; width:624px" />
Intricacies such as the pink on the tongue, laces and midfoot, inspired by the room&#39;s walls, along with the chenille material that mimics the carpet, highlight the meticulous attention to design detail. And of course, the famous couch and the beloved pet dog, Santa&#39;s Little Helper, are beautifully embroidered on the heels.
<img alt="Adidas The Simpsons" src="https://elplanteo-wordpress-staging.s3.sa-east-1.amazonaws.com/wp-content/uploads/2023/10/18115050/the-simpsons-adidas-forum-low-living-room-2-500x410.jpeg" style="height:512px; width:624px" />
<h3>From The Screen To The Feet</h3>
Since 2021, &quot;The Simpsons&quot; and Adidas have collaborated closely, unveiling unique designs that intertwine the essence of the show with the brand&#39;s distinct sporty flair. This year, they offer not only a glimpse into the living room of the yellow-skinned family but also pay tribute to other hallmark elements, like the intro&#39;s clouds and a design inspired by Homer himself.
The <a href="https://elplanteo.com/adidas-los-simpson-sneakers/">Adidas NMD G1</a> &quot;Homer Simpson&quot; mirrors the patriarch of Springfield. From its bright yellow hue to the depiction of Homer peeking through the 3-Stripes on the side, this design is poised to be a fan favorite.
<img alt="The Simpsons Sneakers" src="https://elplanteo-wordpress-staging.s3.sa-east-1.amazonaws.com/wp-content/uploads/2023/10/18115127/Screen-Shot-2023-10-18-at-11.49.36-500x347.png" style="height:433px; width:624px" />
Moreover, the <a href="https://elplanteo.com/adidas-los-simpson-sneakers/">Adidas adiFOM Superstar</a> &quot;Clouds&quot; pay tribute to the iconic clouds that grace the opening of each episode. With a comfortable slip-on silhouette and a design imbued with nostalgia, they&#39;re the perfect addition for any series aficionado.
<img alt="Simpson Adidas Sneakers" src="https://elplanteo-wordpress-staging.s3.sa-east-1.amazonaws.com/wp-content/uploads/2023/10/18115114/Screen-Shot-2023-10-18-at-11.49.43-500x351.png" style="height:438px; width:624px" />
<h3>A Bright Horizon Ahead</h3>
As 2023 nears its end, the partnership between &quot;The Simpsons&quot; and Adidas shows no signs of slowing down. With releases slated for November, fans have much to look forward to. While specifics about the launch on adidas.com are still under wraps, these sneakers are expected to be the talk of the sneaker world in the coming weeks.
More from El Planteo:
<ul>
<li><a href="https://elplanteo.com/estos-son-los-5-episodios-mas-drogones-de-los-simpsons/">Homero Drogado</a>: 5 Episodios Bien Trippy de &ldquo;Los Simpson&rdquo;</li>
<li><a href="https://elplanteo.com/como-armar-porro/">C&oacute;mo Armar un Porro</a>: Tips que Pueden Ayudarte</li>
<li>&iquest;<a href="https://elplanteo.com/que-es-weed-que-significa-en-espanol/">Qu&eacute; es Weed</a>?</li>
</ul>

Adidas And 'The Simpsons' To Launch New Sneaker Line, And The Designs Are Mind-Blowing

German sportswear firm&nbsp;Adidas AG&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/addyy#OTC">ADDYY</a>)&nbsp;<a class="editor-rtfLink" href="https://www.adidas-group.com/en/media/news-archive/press-releases/2023/adidas-announces-preliminary-third-quarter-results-and-increases/" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">disclosed&nbsp;</a>Q3 FY23 preliminary results and a favorable revised FY23 outlook.
In Q3, the company reported a currency-neutral revenue increase of 1% Y/Y. On a reported basis, revenues declined 6% Y/Y to &euro;5.999 billion.&nbsp;
The company&rsquo;s gross margin improved by 0.2ppt Y/Y to 49.3% in Q3. Operating profit stood at &euro;409 million vs. &euro;564 million a year ago, reflecting an operating margin of 6.8% vs. 8.8% prior year.&nbsp;
The company benefited from selling parts of its remaining Yeezy inventory and witnessed improvement in its underlying business.
Outlook: For 2023, Adidas revised guidance for currency-neutral revenues to decline at a low-single-digit rate (vs. decline at a mid-single-digit rate previously).&nbsp;
Also, underlying operating profit (excluding one-offs related to Yeezy and the ongoing strategic review) is now anticipated to be around &euro;100 million in 2023 (vs. about the break-even level prior).&nbsp;
The company now expects an operating loss of around &euro;(100) million in 2023 (vs. a loss of &euro;(450) million earlier). This includes the positive impact from the two Yeezy drops in Q2 and Q3, the potential write-off of the remaining Yeezy inventory of now around &euro;300 million (previously: &euro;400 million), and one-off costs related to the strategic review of up to &euro; 200 million.&nbsp;
Also Read:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/gaming/23/10/35093956/adidas-teams-up-with-sony-for-exclusive-spider-man-2-collection-heres-how-to-get-early-access" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">Adidas Teams Up With Sony For Exclusive Spider-Man 2 Collection: Here&#39;s How To Get Early Access</a>
The company plans to release Q3 &amp; 9M FY23&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/calendars/earnings" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">results on November 8, 2023.</a>
Price Action: ADDYY shares closed higher by 4.90% at $94.61 on Tuesday.
Photo Via Company

Large Cap

Adidas Sees Lower Q3 Sales But Pleased With Yeezy Inventory Sale Benefit

Adidas Now Expects To Report An Operating Loss Of Around €100M In 2023, Vs Previously Issued Guidance OF €450M In 2023

Adidas Updates FY Guidance, Sees Revenue To Decline At A Low-Single-Digit Rate In 2023; Sees Underlying Operating Profit, Now Expected To Reach A Level Of Around €100M; Potential Write Off For Remaining Yeezy Inventory Now €300M + One Off Costs Of €200M

The sportswear industry faces inflation and inventory challenges but is poised to witness considerable long-term growth thanks to robust Gen Z's spending amid increasing health and fitness awareness and e-commerce growth. Amid this, let's analyze whether it would be wise to add NIKE (NKE) and adidas (ADDYY) to your portfolio now. Read more to find out… The sportswear market is growing steadily, fueled by increasing health consciousness, the popularity of sports events, and a rising demand for stylish and comfortable activewear. Nonetheless, it encounters challenges from the counterfeit market, posing a threat to sales and economic stability.
However, waiting for better entry points in sportswear stocks adidas AG (<a href="https://stocknews.com/stock/ADDYY/">ADDYY</a>) and NIKE, Inc. (<a href="https://stocknews.com/stock/NKE/">NKE</a>) seems prudent now.
Sporting goods leaders expect stable or <a href="https://www.retaildive.com/news/sporting-goods-athletics-inflation-inventory-level-challenges/705965/#:~:text=Almost%20all%20(90%25)%20sporting,capital%20are%20a%20continuing%20challenge.">improved sales and margins in 2024</a>. Still, they face continued challenges from inflation and inventory levels, with more than 80% reporting higher inventory peaks than the previous year. This has led to increased promotions, prompting 70% of executives to prioritize improving planning capabilities for the year.
In December 2023, U.S. sporting goods stores <a href="https://www.statista.com/statistics/1107242/sporting-goods-store-sales-us-by-month/">recorded sales of approximately $7.10 billion</a>, marking a significant increase of nearly $1.80 billion compared to the prior month. Further, the global sportswear market is expected to grow at a <a href="https://www.grandviewresearch.com/press-release/global-sportswear-market">CAGR of 10.4%</a> to reach $479.63 billion by 2025. The growth of online retail has made sportswear more accessible, driving the market's prospects.
Moreover, Gen Z's spending on sports apparel remains robust, with global sales expected to <a href="https://www.mckinsey.com/~/media/mckinsey/email/genz/2022/07/12/2022-07-12b.html">exceed €395 billion ($401 billion) by 2025</a>. Social media influence and online sports communities play a significant role in driving Gen Z's engagement with sports apparel, indicating a promising market for brands targeting this demographic.
Besides, the fitness app market is expanding rapidly due to heightened health awareness and technological advancements enabling personalized fitness plans. Increased investment from firms and capital ventures further drives market growth through innovative solutions and geographical expansion.
The global fitness apps market is estimated to grow at a <a href="https://www.bccresearch.com/market-research/information-technology/global-fitness-apps-market.html#:~:text=The%20global%20market%20for%20fitness,18.1%25%20from%202022%20through%202027.">CAGR of 18.1%</a> to reach $34.3 billion by 2027.
Considering these conducive trends, let's discuss the fundamentals of two <a href="https://stocknews.com/category/athletics-recreation/">Athletics &amp; Recreation</a> stock picks, ADDYY and NKE.
Stocks to Hold:
Stock #2: adidas AG (<a href="https://stocknews.com/stock/ADDYY/">ADDYY</a>)
Based in Herzogenaurach, Germany, ADDYY is a leading global provider of athletic and sports lifestyle products distributed through various channels worldwide. The company's portfolio includes footwear, apparel, and accessories under well-known brands such as adidas, adidas Golf, and Five Ten, catering to diverse consumer preferences across regions.
On March 13, 2024, ADDYY posted its first annual loss in over 30 years, attributing it to struggles in North America and the fallout from severing ties with Kanye West, resulting in a €58 million ($62.59 million) net loss despite revenue of €750 million ($809.36 million) from Yeezy sales in 2023.
The company anticipates a 5% sales decline in North America this year, following a 21% drop in the fourth quarter and a 16% decline throughout the year.
On March 11, the German Football Association (DFB) announced that after a historic partnership spanning seven decades, ADDYY will be replaced by NKE as Germany's official supplier from 2027. NKE's winning bid secures a contract from 2027 to 2034, signaling a significant shift in the sporting landscape and marking the end of an era for ADDYY in German football.
ADDYY's trailing-12-month EBIT margin of 1.31% is 82.8% lower than the industry average of 7.61%. However, the stock's trailing-12-month cash from operations of $2.90 billion is 951.9% higher than the $276.02 million industry average.
ADDYY's revenue and levered FCF have grown at CAGRs of 5.1% and 25.2% over the past three years, respectively. However, over the same period, the company's EBITDA and EBIT have decreased at respective CAGRs of 13% and 27.7%.
ADDYY's <a href="https://www.investopedia.com/terms/n/netsales.asp">net sales</a> declined 7.6% year-over-year to €4.81 billion ($5.19 billion) in the fourth quarter that ended December 31, 2023. But the company's gross profit rose 5.5% year-over-year to €2.15 billion ($2.32 billion). Its other operating expenses decreased 9.7% from the year-ago quarter to €2.55 billion ($2.75 billion).
However, the company incurred an operating loss of €377 million ($406.84 million) during the quarter. As of December 31, 2023, its total assets amounted to €18.02 billion ($19.45 billion), compared to its total assets of €20.30 billion ($21.90 billion) as of December 31, 2022.
Analysts expect ADDYY's revenue for the fiscal year ending December 2024 to grow 5.3% year-over-year to $24.38 billion. However, the company's revenue is estimated to decline 1.3% year-over-year to $5.74 billion for the first quarter that ended March 2024. ADDYY further surpassed consensus revenue estimates in three of the trailing four quarters.
Shares of ADDYY have gained 46.5% over the past year to close the last trading session at $112.08. Also, the stock soared marginally intraday.
ADDYY's mixed outlook is reflected in its <a href="https://stocknews.com/powr-ratings/">POWR</a><a href="https://stocknews.com/powr-ratings/"> Ratings</a>. The stock has an overall rating of C, which translates to a Neutral in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
ADDYY has a C grade for Value, Momentum, Stability, and Quality. It is ranked #19 out of 34 stocks within the <a href="https://stocknews.com/category/athletics-recreation/">Athletics &amp; Recreation</a> industry.
In addition to the POWR Ratings stated above, one can access ADDYY's Growth and Sentiment ratings <a href="https://stocknews.com/stock/ADDYY/">here</a>.
Stock #1: NIKE, Inc. (<a href="https://stocknews.com/stock/NKE/">NKE</a>)
NKE designs, develops, and markets athletic footwear, apparel, and accessories globally under brands like NIKE, Converse, and Jumpman. Its products are distributed through retail stores, digital platforms, and independent distributors, serving both athletic and casual markets.
NKE's wholesale segment is under strain due to declining retailer orders and challenges in online sales. Retailers are also <a href="https://www.reuters.com/business/retail-consumer/retailers-slash-prices-more-nike-sneakers-2024-data-shows-2024-02-02/">slashing prices on NKE</a> sneakers twice as much in 2024 compared to two years prior, challenging the brand's pricing power amid fierce competition.
On April 1, 2024, NKE paid a quarterly cash dividend of $0.370 per share on the company's outstanding Class A and Class B Common Stock. The company pays $1.48 annually, which translates to a yield of 1.57% on the prevailing price level, which is higher than its four-year average dividend yield of 0.99%.
The company has raised its dividend payouts at a CAGR of 10.9% and 11.1% over the past three and five years, respectively. Moreover, NKE boasts an 11-year record for consecutive dividend growth.
NKE's trailing-12-month CAPEX/Sales of 1.80% is 41.1% lower than the industry average of 3.05%. However, its trailing-12-month cash from operations of $7.23 billion is significantly higher than the $276.02 million industry average.
NKE's revenue and EBITDA have grown at CAGRs of 5.9% and 4.1% over the past five years, respectively.
During the third quarter, which ended February 29, 2024, NKE's revenues increased marginally year-over-year to $12.43 billion. The company's gross profit rose 3.6% from the previous year's quarter to $5.56 billion. However, its net income and EPS decreased by 5.5% and 2.5% from the year-ago quarter to $1.17 billion and $0.77, respectively.
Street expects NKE's revenue and EPS to rise marginally and 14.4% year-over-year to $51.66 billion and $3.70, respectively, in the fiscal year ending May 2024. However, the company's revenue and EPS are estimated to decline 2.3% and 5.6% year-over-year to $12.65 billion and $0.89, respectively, for the first quarter ending August 2024.
Additionally, NKE surpassed consensus EPS estimates in three of the trailing four quarters.
NKE's stock has soared 4.9% over the past six months to close the last trading session at $93.98. However, the stock has declined marginally intraday.
NKE's mixed fundamentals are reflected in its POWR Ratings. The stock has an overall rating of C, equating to a Neutral in our proprietary rating system.
NKE has a C grade for Growth, Momentum, and Stability. It is ranked #4 in the same industry.
<a href="https://stocknews.com/stock/NKE/">Click here</a> to see NKE's additional ratings for Value, Sentiment, and Quality.
What To Do Next?
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<hr />
NKE shares were trading at $91.95 per share on Monday morning, down $2.03 (-2.16%). Year-to-date, NKE has declined -15.01%, versus a 10.06% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Kritika Sarmah</h2> <img src='https:/wp-content/uploads/2022/08/Kritika-Sarmah_Image-3.jpg' style="float:left; padding:5px;width:125px;">Her interest in risky instruments and passion for writing made Kritika an analyst and financial journalist. She earned her bachelor's degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities.<a href="https://stocknews.com/authors/?author=kritika-sarmah">More...</a>The post <a href=https://stocknews.com/news/nke-addyy-are-nike-nke-and-adidas-addyy-the-top-sportswear-stocks/>Are Nike (NKE) and Adidas (ADDYY) the Top Sportswear Stocks to Buy Today?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Are Nike (NKE) and Adidas (ADDYY) the Top Sportswear Stocks to Buy Today?

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Shares of athletic footwear and apparel giant Nike (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) have declined nearly 25% over the past year, lagging the broader market. The company ...

Nike Stock (NYSE:NKE): Will the Footwear Giant Regain its Mojo?

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Legal

Press Releases

ADDYY FINAL DEADLINE TUESDAY: ROSEN, TRUSTED INVESTOR COUNSEL, Encourages adidas AG Investors to Secure Counsel Before Important June 27 Deadline in Securities Class Action First Filed by the Firm – ADDYY, ADDDF

Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Edgio, Fulcrum, adidas, and Spirit AeroSystems and Encourages Investors to Contact the Firm

Small Cap

CLASS ACTION ALERT: The Law Offices of Vincent Wong Remind adidas Investors of a Lead Plaintiff Deadline of June 27, 2023

The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against adidas AG (ADDYY, ADDDF)

DEADLINE ALERT for ADDYY/ADDDF, FULC, TDS, and SPR: The Law Offices of Frank R. Cruz Reminds Investors of Class Actions on Behalf of Shareholders

ADDYY FINAL DEADLINE TOMORROW: ROSEN, THE FIRST FILING FIRM, Encourages adidas AG Investors to Secure Counsel Before Important June 27 Deadline in Securities Class Action Commenced by the Firm - ADDYY, ADDDF

ADDYY ALERT: The Klein Law Firm Announces a Lead Plaintiff Deadline of June 27, 2023 in the Class Action Filed on Behalf of adidas AG Shareholders

SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of adidas AG - ADDYY

adidas AG (OTC: ADDYY, OTC: ADDDF) Investor Notice: Update in Lawsuit for Investors who lost money with shares of adidas AG (OTC: ADDYY, OTC: ADDDF) announced by the Shareholders Foundation