Free Trial

Adidas (A3, A-; double neg)  - comp's report weak US retail conditions (25% of sales for Adidas)

CONSUMER CYCLICALS
  • Nike in 3Q results yesterday issued cautious outlook with revenue now expected to fall by low single digits in 1H (from June) vs. consensus for a +4% gain - it dropped its stock -6% in after-market trade, while Lululemon Athletic dropped -12% on similar weak 1Q guidance (equity takes; {NSN SAQNGBDWLU68 <GO>}).
  • Read-through to Adidas has been mixed - it was struggling in pre-market but is trading flat now, Citi analyst were out saying Nike outlook headwind for JD Sports but could be a opp. for Adidas & Puma.
  • News today also on Nike replacing Adidas as main uniform sponsor of Germany's national football teams - despite latter being headquartered in the country with a 77yr partnership (bbg). Nike agreement is from 2027-34, the country's football association commenting it was "by far the best economic offer and also convinced us with its vision" (i.e. no direct ESG read-through) - reports are Nike will pay €100m/yr.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.