Adidas (#ADS.DE) weekly special report based On 1 Lot Calculation:
GLOBAL SPORTSWEAR MARKETS:
- GLOBAL SPORTSWEAR MARKET SHARE: Nike holds 43.7% of the global sportswear market, followed by Adidas (23.7%), Puma (7.6%), Under Armour (5.6%) and etc.
- MARKET POTENTIAL: THE MARKET COULD BE EXPECTED TO GROW FROM $160.61 BILLION IN 2020 TO $267.61 BILLION IN 2028. This would mark an increase of around 65% or around 8% per annum on average.
THE COMPANY:
- Adidas is a German company, which is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services. It maintains a market capitalization of around $27 billion.
- REVENUE GROWTH: 2022- 2030. EXPECTED AVERAGE GROWTH PER YEAR: +6.00%. Adidas’s revenue could be expected to grow from EUR 22.99 billion in 2022 to EUR 36.42 billion in 2030.
- EARNINGS GROWTH: 2022- 2030. EXPECTED AVERAGE PER GROWTH YEAR: +28.00%: Adidas’s earnings could be expected to grow from EUR 426 million in 2022 to $2.51 billion in 2030.
- ADIDAS SALES DISTRIBUTION: Europe, the Middle East and Africa 37%, North America 24%, China 22%, Asia- Pacific 10% and Latin America 7%.
THE COMPANY RELIANCE ON CHINA: 22% OF TOTAL SALES
- ADIDAS sales in China (Pre-pandemic): 22% of Total Global Adidas Sales
- ADIDAS sales in China (During the Pandemic Lockdowns): 16% of Total Global Adidas Sales. China sales fell considerably in China over the pandemic period of 2020- 2022.
- CHINA REOPENING (2023): China, which used to make one fifth of Adidas’ sales before the pandemic, is getting on track to recover what they have lost over the past few quarters. The China’s economy is expected to grow by more than 5%
- CHINA CURRENT MARKET SHARE: Nike holds 25.2%, followed by China’s Anta Sports at 16.2% and Adidas’ 14.8%. Li Ning ranked No.4 at 8.2%.
OTHER EVENTS AND ANALYSIS:
- EVENT (CONFIRMED: March 3, Premarket): Q4 EARNINGS REPORT.
- Jenna Ortega (Generation Z icon and actress in Netflix hit series “Wednesday “) signed her first major fashion deal with Adidas - February 1st.
- Adidas was the major sponsor of the World Cup (November 20- December 18). The benefits from this huge global audience and the sports promotion will be accounted for in the Q4 earnings report.
- PRICE ACTION: THE STOCK HAS HAD A DOWNWARD CORRECTION OF AROUND 73% FROM IT'S ALL- TIME HIGH OF €336.25 (August, 2021) to its lowest rate since 2020 to €90 (February, 2016). The stock has been buffeted by supply chain concerns, high inflation and the effects of COVID lockdowns in China. Adidas was last trading around €152, and if a full recovery follows recent all- time highs, the stock could see an upside of around 121%. However, the price could decline further.
ANALYSTS OPINIONS: Deutsche Bank forecasts €180 Bankhaus Metzler forecasts €165 a share. CaixaBank forecasts €186.8 and M.M.Warburg forecasts €180.
ADIDAS(#ADS.DE), February 08, 2023
Current Price: 156.00
|
Adidas |
Weekly |
|
Trend direction |
|
|
220.00 |
|
|
198.00 |
|
|
169.00 |
|
|
143.00 |
|
|
138.00 |
|
|
135.00 |
Example of calculation based on weekly trend direction for 1 Lot1
|
Pivot Points |
||||||
|
Profit or loss in $² |
68,790.08 |
45,143.49 |
13,972.99 |
-13,972.99 |
-19,347.21 |
-22,571.75 |
|
Profit or loss in € |
64,000.00 |
42,000.00 |
13,000.00 |
-13,000.00 |
-18,000.00 |
-21,000.00 |
|
Profit or loss in £² |
56,890.80 |
37,334.59 |
11,555.94 |
-11,555.94 |
-16,000.54 |
-18,667.29 |
|
Profit or loss in C$² |
92,011.20 |
60,382.35 |
18,689.78 |
-18,689.78 |
-25,878.15 |
-30,191.18 |
- 1.00 lot is equivalent of 1000 units
- Calculations for exchange rate used as of 09:50(GMT) 08/02/2023
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