albert Chan
Adidas AG
Sector: Apparel and footwear Countries of operation: Australia, China, the UK, the US and 15 other countries, with e-commerce in over 160 countries Key product categories: Accessories, footwear and sportswear apparel Annual Metrics [caption id="attachment_148348" align="aligncenter" width="700"]
Fiscal year ends on December 31*Trailing 12 months ended on March 31, 2022[/caption] Summary Founded on August 18, 1949, and headquartered in Herzogenaurach, Bavaria, Adidas AG is a designer and manufacturer of sports accessories, apparel and footwear. The company has a physical footprint in 19 countries and digital businesses in more than 160. The retailer generated sales of €21.2 billion ($22.0 billion) in fiscal 2021 and, as of December 2021, has 61,400 employees. Company Analysis Coresight Research Insight: Adidas saw strong revenue recovery in 2021 against the backdrop of prolonged lockdowns in Europe and industry-wide supply chain challenges. However, the company had a tough start in 2022 as supply constraints reduced the top line by €400 million ($415 million) and supply chain costs continued to rise, driving the company’s gross margin down 1.9 percentage points in its first quarter, ended March 31, 2022. We believe that Covid-19-related lockdowns in Greater China will continue to impact the company’s revenues in the short term but the company’s overall strategy mix, including strong digital capabilities and product innovation, will fuel growth.
| Tailwinds | Headwinds |
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- Deliver groundbreaking innovation in sportswear and cutting-edge fashion items.
- Upgrade and focus on its core categories. Focus on its four most important categories: Sport, Football, Running, and Training and Outdoor. In Lifestyle, it will upgrade its current sportswear offering, emphasizing athleisure more strongly—addressing current consumer demand for casualization. The company will move its Originals brand to the premium segment to ensure stronger distinction.
- Focus on attracting more female consumers. Execute a cross-category plan aiming to achieve product excellence in women’s categories and to elevate women’s experiences.
- Pivot to a more directly consumer-facing operating model. This new business model will be built around membership.
- Leverage commercial and brand moments to access consumer touchpoints and offer exclusive products. Design personalized stories and experiences for members across these touchpoints to drive engagement.
- Leverage member data for use in product design and the decision-making process.
- Ensure nine out of ten articles are produced sustainably by 2025, compared to six out of ten as of March 2021.
- Launch a new vegan, fully recyclable and biodegradable version of the popular lifestyle shoe Stan Smith in 2022.
Source: Adidas[/caption]
Company Developments
| Date | Development |
| July 15, 2022 | Adidas launches its first product in collaboration with Spinnova, a Finnish sustainable material company, which has developed a technology that can transform plant-based cellulosic fiber into fiber suitable for the textile industry. |
| June 7, 2022 | Adidas launches a collection in collaboration with Gucci. |
| June 1, 2022 | Adidas presents its Spring/Summer 2022 collection in collaboration with Wales Bonner, a London-based luxury fashion brand. |
| May 6, 2022 | Adidas launches brand new JS Wings sneakers in collaboration with Jeremy Scott, an American fashion designer. |
| May 5, 2022 | Adidas announces a new long-term strategic partnership with Foot Locker. |
| April 12, 2022 | Adidas launches four new colorways of the ADIZERO X ALLBIRDS 2.94 KG CO2E sneaker (collection in collaboration with Allbirds). |
| January 26, 2022 | Adidas pmore than 2,800 new hires in 2022. |
| January 20, 2022 | Adidas joins forces with Prada to launch a new NFT project. |
| January 10, 2022 | Adidas starts its multi-year share buyback program and plans to repurchase shares for up to €1 billion ($1.04 bilion) in its first quarter of fiscal 2022. |
| December 16, 2021 | Adidas launches a non-fungible token (NFT) collection with exclusive access to streetwear drops. |
| November 4, 2021 | Adidas collaborates with Xbox on a console-inspired sneaker. |
| November 4, 2021 | Adidas receives strong ESG rating by S&P for outstanding sustainability performance. |
| October 22, 2021 | Adidas collaborates with Peloton and Ivy Park to launch a collection of apparel and footwear. |
| May 7, 2021 | Adidas upgrades its outlook for its 2021 full year, expecting sales growth in the high teens. |
| March 10, 2021 | Adidas presents its new growth strategy “Own the Game,” which will be in place until 2025. |
| February 16 2021 | Adidas initiates a divestiture process for Reebok. |
| January 21 2021 | Adidas partners with Stella McCartney to debut a new sustainable collection, “Futureplayground.” |
| January 4, 2021 | Adidas announces the launch of a range of vegan shoes made from a mushroom-based biodegradable leather alternative. |
| December 28, 2020 | Adidas announces that more than 60% of its products will be made with sustainable materials in 2021. |
| November 10, 2020 | Adidas reports that its stores are more than 90% operational in its third quarter—most of which had been closed for several weeks during its second. Subsequently, the company records a strong sequential revenue improvement during the quarter. |
| October 7, 2020 | Adidas announces Amanda Rajkumar as its new Executive Board Member responsible for Global Human Resources. |
| January 21, 2020 | Adidas announces that it will use more than 50% recycled polyester in its products in 2020 for the first time. |
| October 24, 2019 | Adidas announces that Eric Liedtke, Head of Global Brands at Adidas, will step down on December 31 after 25 years with the company. Brian Grevy, CEO of Gant, will re-join the company to take over the role. |
- Kasper Rorsted—CEO
- Harm Ohlmeyer—CFO
- Martin Shankland—Global Operations
- Roland Auschel—Global Sales
- Brian Grevy—Head of Global Brands
Source: Company reports