Adidas

adidas AG (XETR: ADS) is a multinational designer and distributor of athletic and casual footwear, apparel, and accessories. The company is the largest sportswear manufacturer in Europe, the second-largest in the world, and the fifth-largest in the US. Adidas was founded and headquartered in Germany in 1949, with the company making its IPO on the Deutsche Börse exchange in 1995. Adidas is a longstanding partner of the FIFA World Cup, in addition to sponsoring multiple prominent sports clubs and key players such as Lionel Messi. It generated EUR 21.4 billion (~USD 20 billion) in 2023. 

Adidas is known for its range of footwear and apparel products aimed at athletic and casual users. Additionally, the company offers accessories like bags, headwear, eyewear, and sports equipment. The labels it owns feature multiple footwear and apparel products, including “ Sportswear ” designed for athleisure purposes; “ adidas Originals ,” which features updated designs of the brand’s classic products; and “ Performance ,” focused on athletes and fitness enthusiasts. Further, its services include the adiClub membership program (active in ~50 countries), and smartphone apps for running (adidas Running, adidas Training) and shopping (Adidas app and Confirmed app). 

The company’s largest markets were the EMEA and North American regions, accounting for ~38% and ~24% of revenue, respectively, in 2023. Adidas outsources nearly 100% of its production to manufacturing partners, primarily in Asia. Indonesia, Cambodia, and China are the leading sourcing markets for footwear, apparel, and accessories, respectively.

Adidas forecasted revenue for the 2021–2025 period to rise 8%–10% per annum on average, with a 16%–18% corresponding increase in net income. By 2025, it planned to achieve climate neutrality (GHG) in its operations and reduce its CO2 footprint per product by 15%.