With its 70-year pedigree and remarkable achievements under its belt, Adidas (ADDYY) is still going strong, having no intention of giving way to other companies in the sportswear industry. Its latest quarterly results, announced in early May 2023, made investors very happy and sent its shares 8% higher. Adidas’s quarterly operating profit of 60 million euros far outweighed investors’ pessimistic prediction of 15 million euros. And even though the company’s sales edged 1% lower this quarter, they still were better than an anticipated decline of 4%. Despite a gloomy forecast voiced after it had lost the profitable Yeezy line, which had accounted for 8% of its total sales, due to cutting ties with Kanye West, the company showed that it was more resilient than analysts thought. Its Chinese market has slowly been recovering, its Latin America market witnessed an increase in sales by a staggering 49% this quarter, and its €1 billion worth of unsold Yeezy trainers will be sold off in a charity fire sale. As has happened before in its history, this time around, Adidas is again showing itself capable of overcoming crises and staying firm in the competition with the other sportswear giants, Nike and Under Armour.
Fascinating Facts about Adidas
Although Nike outperforms Adidas, Adidas is a company that is highly influential in North America and abroad. The company has succeeded in garnering people’s attention with new designs created by Jeremy Scott. Adidas’s ground-breaking technology, such as Ultra Boost, has also contributed to its popularity.
- In 2021, Adidas’s worldwide net sales reached $21.234 billion, and $22.511 in 2022.
- Over 27% of the total Adidas sales came from Europe in 2021.
- Adidas produced 340 million pairs of shoes in 2021 and about 420 million pairs last year.
- In 2022, the company produced some 480 million units of sportswear.
- Adidas has 28 stores in the United Kingdom.
- In 2020, 6.6 million people in the UK wore Adidas shoes.
- Adidas outsources nearly 100% of its production.
- 65% of Adidas’s partners have been working with Adidas for a decade.
- Adidas’s most iconic sneaker “Stan Smith” was initially intended to be named after the French tennis star, Robert Haillet.
- Adidas almost filed for bankruptcy in the ‘90s.
- Adidas Superstar was the first basketball shoe with a low-top silhouette featuring an all-leather upper portion.
- Jeremy Scott had collaborated with Adidas for many years before the company produced a version of the Forum Hi sneaker with the designer’s face on it.
- The first pair of Adidas shoes were track spikes made for track and field.
- Adidas was the first company to install a microchip into the design of its sneakers. The Adidas Micropacer had a computer display that allowed athletes to check their pace and the number of calories they burned.
- Adidas’s stripes, the most easily recognizable feature of its brand, were put on the sneakers for stability, not for the beauty of the design.
- The first piece of sports apparel created in 1967 by Adidas was the Franz Beckenbauer tracksuit. The tracksuit was named after the legendary footballer.
- Adidas is the parent company of TaylorMade, Rockport, and (formerly) Reebok.
- The Adidas Superstars were made for basketball players but became popular with skateboarders in the early ‘90s.
- The original Adidas Superstars were the only line in the series to feature a golden trefoil on the sneaker’s tongue.
- Although the first Adidas shoes were made in Germany, now the answer to the question of where Adidas’s shoes are made is more equivocal because they are made around the world, mostly in Asian countries: China, Indonesia, Thailand, and Taiwan.
- Adidas’s Tubular line of sneakers was inspired by car tires. The “tubular snake” was created as an emulation of tires and their threading.
- The sporting goods company also owns a share of the German football club Bayern Munich.
- This year, North America and Greater China are some of Adidas’s most important markets. Combined, these regions account for more than 40% of the company’s annual retail sales.
- In 2015-2016, Adidas signed a 10-year kit deal with Manchester United for £750 million. This has so far been the most valuable kit deal in the history of sports.
- Adidas announced its plans to sell the Reebok brand in 2021. In early 2022, Reebok was acquired by Authentic Brands Group for a total consideration of $2.5 billion.
History of Adidas
- “Adidas” is not an acronym of “All Day I Dream About Sports,” as some people think. The name of the company is the combination of the shortened name of its founder, Adolf Dassler – Adi – and the first syllable of his family name – Das.
- Adi Dassler was born in Herzogenaurach, a small German town, whose residents mostly worked in shoe manufacturing factories.
- Adi was the younger brother of Rudolf Dassler, founder of Puma. Having worked for some time together, the brothers split up in hatred after World War II because of Adi’s alliances with Nazis, establishing separate companies. Once the business was divided, the brothers never spoke again.
- Adi Dassler could not find a job after the end of World War I. Therefore, he started making shoes in the bathroom of his mother’s laundry.
- He registered the ‘Gebrüder Dassler Schuhfabrik’ in 1924 and began the mission to provide athletes with the equipment enhancing their performance.
- The Dassler brothers had their first breakthrough when they persuaded the sprinter Jesse Owens to wear their leather track shoes with extra-long spikes during the Olympics in 1936. Owens became the first African American athlete to receive a sponsorship and, galvanized by the innovative shoes, won four Olympic Gold medals. After Owens’s victory, the demand for the Dasslers’ shoes increased.
- Adidas company was registered on the 18th of August 1949.
- After experimenting with different numbers of stripes on his shoes, Adi decided on three to give his sportswear a distinctive look. In March 1949, Dessler registered the three-stripe logo as the company’s trademark.
- In 1954, when the German National football team became the World champion, rumors started that the footballers’ shoes gave them a decided advantage. Indeed, Adidas then developed the team’s shoe with exchangeable cleats that could adapt to different pitch conditions. With the German team’s victory, Adidas became known worldwide.
- In 1967, the Franz Beckenbauer tracksuit became the first piece of apparel for Adidas, allowing the company to venture into the sports apparel industry.
- Adidas created the official ball, Telstar, for the 1970 FIFA World Cup for the first time.
- The trefoil logo was designed in 1971 and launched in 1972 just before the Summer Olympics in Munich.
- Adi Dassler was honored with a statue outside the Adi Dassler Stadium in Herzogenaurach. It was created by Josef Tabachnyk and unveiled in 2006.
- At the time of his death in 1978, Adi Dassler had 17 factories and annual sales of one billion marks.
- Adidas was transformed into a private limited company in 1989, remaining family-owned until its IPO in 1995. In 1995, Adidas also launched its first website.
- Some of the most famous Adidas innovations – Torsion, the Equipment concept, the Streetball campaign, and the Predator football boot were created between 1989 and 1995.
- In the new century, Adidas shifted its focus to sports-inspired streetwear. The collaborations with Yohji Yamamoto and Stella McCartney produced interesting labels such as Y-3 (2003) and Porsche Design Sport (2007).
- Adidas bought Reebok, including the brands Rockport and Reebok-CCM Hockey in 2006 and was re-named Adidas AG.
- In 2013, Adidas introduced the Energy Boost running shoe featuring a completely new cushioning material.
- Reebok stopped being part of Adidas in 2021.
- Adidas and Gucci began a collaboration. The first collection of Adidas X Gucci combined the companies’ two emblems and was shown on the runway last year.
Read on to learn more historical and statistical information about Adidas.
Adidas’s Annual Revenue from 2009 to 2022 in $US Billions
A company’s revenue is the amount of money it receives from its customers in exchange for the sales of goods and services. Revenue is the top line item on an income statement from which a company’s costs and expenses are subtracted to arrive at net income. For the last several years, Adidas’s annual revenue has presented an uneven line, probably affected by lockdowns when people could not train in gyms and outdoors and needed sportswear less than usual. In 2019, the company’s annual revenue reached $26.477 billion, registering a 2.3% growth from 2018. In the first year of the pandemic, Adidas’s annual revenue declined by 14.39 % to $22.688 billion, compared to the previous year. When lockdowns eased worldwide in 2021, the company’s yearly revenue climbed by 10.83% from 2020 to $25.122 billion. Its revenue for the twelve months ending September 30, 2022, was $24.230 billion, a 5.95% decline year-over-year. Adidas’s revenue for the quarter ending September 30, 2022, was $6.454 billion, a 4.84% decline year-over-year. The table below illustrates the uneven trajectory of Adidas’s annual revenue since 2009.
Adidas’s Annual Revenue from 2009
|Year||Revenue in $US Billions|
Adidas’s Quarterly Revenue Since 2019
|Quarter||Revenue in $US Billions|
Adidas Q3 2023 Earnings
Adidas reported its 2023 third-quarter earnings on Wednesday, November 8, with revenue in all regions other than North America edging slightly higher. The sportswear giant revealed total revenues declined 6% to €5.999 billion in the third quarter from €6.408 billion in the same period last year.
Adidas Q2 2023 Earnings
Adidas reported its 2023 second-quarter earnings on Thursday, August 3, with a revenues decline of 4.5% year-over-year to €5.34 billion, with currency-neutral revenues remaining flat year-over-year. The company also narrowed its projected 2023 loss thanks to strong demand for the leftover stock of its Yeezy shoe brand, having halted sales of the sneaker after it cut ties with designer Ye last year.
Adidas’s Earnings per Share from 2010 to 2022
A company’s earnings per share are defined as its net earnings or losses attributable to common shareholders per diluted share base, which includes all convertible securities and debt, options, and warrants. For the quarter ending September 30, 2022, Adidas’s EPS was $0.96, registering a drop of 66.98% year-over-year. Adidas’s EPS for the twelve months ending September 30, 2022, was $3.83, a decrease of 38.48% year-over-year. In 2021, Adidas’s annual EPS was $6.45, a whopping 410.94% increase from 2020, while in the first year of the pandemic, it reached $1.26, dropping by 77.46% from 2019. Adidas’s 2019 annual EPS was $5.60, which constituted a 12.63% growth from 2018.
Adidas’s EPS from 2010 to 2021
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Adidas’s Net Sales Worldwide from 2000 to 2022 in Billion Euros
Net sales are the sum of Adidas’s gross sales minus its returns, allowances, and discounts. The table below shows Adidas Group’s net sales worldwide. Last year, the company’s net sales amounted to about 22.5 billion euros.
Adidas’s Net Sales Worldwide from 2000 to 2022
|Year||Net Sales in Billion Euros|
Adidas’s E-Commerce Net Sales from 2014 to 2022
Adidas America, Inc. operates adidas.com, an online store, tailored for American customers. The company’s e-commerce net sales are generated mostly in the United States. It is noteworthy that adidas.com achieves the greatest part of its e-commerce net sales in the “Toys, Hobby and DIY” category. It also offers products in the “Fashion” category. To track the upward trajectory of Adidas’s e-commerce net sales, see the table below:
Adidas’s E-Commerce Net Sales in Billion US Dollars from 2014 to 2022:
|Year||E-Commerce Net Sales|
Global Share of Adidas Retail Sales in 2022 by Region
In 2022, about 38% of Adidas Group’s net sales were generated in the EMEA region; that is, in Europe, the Middle East, and Africa. Sales shares stood at 28% in North America and at 14% in Greater China. Greater China, for geopolitical reasons, is a difficult region for Adidas. In the latest quarter, sales there dipped by 9%, but the company sees signs of better performance in the Chinese market. There is hope that retailers in China will order more in the future.
Global Distribution of Adidas Retail Net Sales in 2022
|Region||Shares of Net Sales|
Adidas’s Number of Retail Stores Worldwide from 2016 to 2022
Last year, the Adidas Group had a global total of 1,990 stores in operation, decreasing from almost 2,200 in 2021. The decrease happened because the company decided to close down its stores in Russia after the beginning of its military campaign in Ukraine. Back in 2016, customers could shop for Adidas products in more than 2,800 brick-and-mortar stores around the world.
Adidas’s Global Number of Stores Since 2016
|Year||Number of Stores|
Adidas’s Number of Retail Stores by Store Type from 2008 to 2022
Adidas sells its footwear, apparel, and other goods in concept stores, factory outlets, and concession stores. A concept store is a shop selling a unique and carefully curated collection of items. Adidas footwear and apparel evoke an active lifestyle, appealing to a sports-minded target audience. In such stores, Adidas products are mixed and attractively displayed to convince customers of the need to buy them. Adidas factory outlets sell footwear and apparel at a heavily discounted price. Items sold in its factory shops are either first-quality or discontinued or irregular or canceled orders. There are also Adidas concession stores, which are small shops located within malls and larger stores. To learn where Adidas has preferred to sell its products since 2008, see the following table:
|Year||Concept Stores||Factory Outlets||Concession Corners and Other|
Global Brand Value of Adidas from 2016 to 2022
A company’s brand value measures the sales performance of a brand or product, using financial data. Adidas was valued at over $14.6 billion in 2022. This was a slight growth from around $14.3 billion recorded in 2021. The multinational corporation is the second-largest sportswear company in the world after Nike, whose brand was valued in 2022 at more than $33 billion. It is also noteworthy that the Adidas brand is structured into three divisions: Forever Sports, Originals, and Adidas Equipment. These divisions are separate organizations because they produce different products to cater to different audiences, from different walks of life.
|Year||Brand Value in $US Billions|
Global Brand Value Comparison of Adidas and Nike from 2015 to 2022
Adidas brand was valued in 2022 at approximately $14.6 billion. Last year, the company celebrated the sixth consecutive year of growth following two years of decline. By comparison, its main competitor, Nike, has increased its brand value year over year since 2010. It reached around $33.176 billion in 2022. Both companies drive growth in the sportswear market around the globe, though Nike is more popular at home, in its North American market. Nike generates about 41% of its total revenue in the region. Only about 15% of Adidas’s global revenue comes from North America. The increase and decrease in the brand value of the two sportswear companies are reflected in the table below:
Brand Value Comparison of Adidas and Nike from 2015 to 2022 in Billion US Dollars
Number of Employees of Adidas Worldwide from 2010 to 2022
At the end of the 2022 fiscal year, the Adidas Group employed 59,258 people worldwide. As the company closed its stores in Russia after the start of the Russian-Ukrainian war, the number of its employees decreased. In 2019, the company accounted for over 65,000 employees.
|Year||Number of Employees|
Adidas’s Stock Forecast
As of writing, on May 28, 2023, Adidas’s stock price is €155.82. Analysts’ yearlong price prediction is slightly lower. Their average target for the company is €135.00. If analysts’ predictions come to pass, this would result in a potential downside of about -18.1% from the current May price. The high-end analysts’ forecast for Adidas stock price is €195.00, while their low is €75.66. Analysts also predict that Adidas stock will remain a better investment than its arch-competitor Nike. This has been the case over the last five years: Adidas has rewarded shareholders with a 300% return compared to Nike’s 100% return. The general expectation is that, as the middle class grows worldwide, Adidas will have a larger customer base and continue expanding over the coming decades.
Adidas’s Emphasis on Innovation
Since its inception in the last century, Adidas’s strength has always been innovation. Adi Dassler’s shoes were invariably sensational. After the German National football team won in 1954, Adi Dassler’s boots on the German footballers’ feet gained international recognition. They were only half the weight of orthodox English football boots, boasted screw-in studs adaptable to ground conditions, and made running faster with a foam rubber interior. Forward-thinking, Adidas also was the first company in the world to put a computer into sports shoes in the ‘80s when computers were still a novelty on people’s desks, let alone in their footwear. An innovation ahead of its time, the Micropacer featured a system that provided performance statistics to athletes. These days, Adidas’s innovative projects boggle the most progressive minds used to technological creativity. The company works on shoes made from plastic and mushrooms, experimenting with these unusual materials not to impress the public but, as it has always done, to improve sportsmen’s performance. The Boost technology for shoes in Adidas’s Y3 series has recently changed the game in the footwear market. It is innovative cushion technology using thermoplastic polyurethane material in the soles to improve shock absorption. In such shoes, sportsmen run faster and more consistently because of the high energy return.
Indeed, whatever innovative detail Adidas has introduced into its sportswear or apparel, its aim has always been to cater to sportsmen’s needs to help them reach better results. Adi Dassler always attentively talked to athletes, listened to their wishes, and created footwear according to their requirements. Because of Dassler’s thoughtful approach to sports shoes, wearing Adidas has become synonymous with winning Gold Medals and breaking records. After Wilma Rudolph won three Gold Medals in the 1960 Summer Olympic Games, 75% of sportsmen competing in the Olympics put Adidas shoes on their feet. They continue wearing Adidas until now. Witness the most recent sports event: FIFA World Cup 2022. Its title winners, Argentina, clad in Adidas shirts, outscored France in a thrilling match and brought home the trophy. Adidas’s emphasis on sportsmen’s comfort and improved performance ensures its longevity and prosperity and secures it a place of honor among other sportswear titans. Inferior only to Nike, Adidas is now the most dominant sportswear and sporting goods company with a current market capitalization of 29.56 billion euros. To learn more curious facts about Adidas and gather statistical evidence of its success, continue reading. The paragraphs below elaborate on the reasons why Adidas has long been the key force in the sportswear industry.
- Adidas has recently partnered with Parley for the Oceans to design shoes from ocean plastic.
- Together with the biotech startup Bolt Threads, Adidas released vegan shoes made from mushrooms.
- The company has promised to use exclusively recycled materials by 2024.
- Adidas also released a vegan option of its classic, Stan Smith.
- Adidas launched its circular running shoe in 2021.
- Adidas is working on a game-changer, Futurecraft.4D.Strung. Adidas collects data about the shape and movement of a person’s foot and inserts the information into the algorithm that produces a personalized shoe. The shoe is made from one material without seams. Meanwhile, the company designed the prototype for short-distance training runs at 5m/s, and it plans to use the Strung technology in other sports as well.
Adidas’s Sponsorships and Partnerships
Football has always merited Adidas’s undivided focus. For over seventy years, the company has invested in developing football boots, apparel, and a ball, becoming an integral part of the history of this popular sport. As a global leader in football, Adidas has long been an official supplier of the most significant football tournaments in the world: the FIFA World Cup, the UEFA Champions League and Major League Soccer, and the UEFA European Championship. Adidas also sponsors some of the top football clubs, including Real Madrid, Manchester United, Arsenal, FC Bayern Munich, and Juventus. Its sponsorship also received such top Federations as Germany (DFB), Spain (RFEF), Belgium (RBFA), Argentina (AFA), Japan (JFA), and Italy (FIGC).
Adidas has also formed partnerships with the star performers on the football field. Among them are Leo Messi, Mohamed Salah, Paulo Dybala, Karim Benzema, Catarina Macario, Jude Bellingham, Vivianne Miedema, Trinity Rodman, Jennifer Hermoso, Serge Gnabry, Pedri, Joao Felix, Lindsey Horan, Wendie Renard. In the past, the greatest footballers sponsored by Adidas included Phillip Lahm, Steven Gerrard, Frank Lampard, Iker Casillas, and David Beckham. Many of these footballers were featured in Adidas commercials. The world’s favorite English football player, David Beckham, was the face of Adidas’s campaigns several times. He teamed up with Adidas in 2019, on the David Beckham Ultraboost commemorating his 1989/1999 season. In 2021, Adidas launched the Ultraboost 2021, in a commercial that describes running in Adidas Ultraboost shoes as similar to participating in your own video game.
Adidas has supplied the official match ball for all FIFA World Cup matches since 1970. For every World Cup, Adidas designs a new ball by combining the latest technologies and unique designs. Among Adidas’s memorable balls was the Tango (1982), which was the first ball made from leather and polyurethane. The Azteca, created in 1986, was the first fully synthetic ball, whereas the Questa made in 1994 was the polyurethane foam-based ball. The +Teamgeist presented in 2006 was a revolutionary ball with its innovative and highly iconic design and panel technology.
Adidas’s Frequently Asked Questions and Answers
Q: When was Adidas founded?
A: Adi Dassler founded Adidas on August 18, 1949.
Q: Who are Adidas’s founders?
A: Adi Dassler started the company almost single-handedly, with only 47 employees, in the small town of Herzogenaurach.
Q: Who owns Adidas?
A: Adidas is a public company.
Q: Where are Adidas products made?
A: Adi Dassler used to make his shoes and apparel in Germany. Now, however, Adidas products are made around the world, mostly in the Asian region, in countries such as China, Indonesia, Thailand, Taiwan, India, Brazil, Turkey, Cambodia, and the United States.
Q: How much is Adidas worth?
A: How much a company is worth is typically represented by its market capitalization, or the current stock price multiplied by the number of shares outstanding. Adidas AG’s net worth as of May 26, 2023, is $31.96B.
Q: How much is the Adidas logo worth?
A: The Adidas logo is estimated to be worth around $14.5 billion.
Q: What does Adidas stand for?
A: The company’s name is the combination of the shortened name of its founder, Adolf Dassler – Adi – and the first syllable of his family name – Das.
Q: Where is Adidas headquartered?
A: Adidas is headquartered in Herzogenaurach (Germany) and has additional key locations: Portland (USA), Shanghai (China), Costa del Este Panamá, and Amsterdam (Netherlands).
Q: Does Adidas own Reebok?
A: Adidas owned Reebok from 2006 to 2021. After the sell-off, Reebok is now owned by Authentic Brand Group.
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