adidas AG
adidas AG, together with its subsidiaries, designs, develops, produces, and markets a range of athletic and sports lifestyle products in Europe, Greater China, Japan, South Korea, Latin America, North America, and internationally. The company offers footwear and apparel, as well as accessories and gear, including bags, balls, sunglasses, and fitness equipment under the adidas brand; golf footwear and apparel under the adidas Golf brand; and outdoor footwear under the Five Ten brand. It sells its products through its own retail stores, mono-branded franchise stores, shop-in-shops, joint ventures with retail partners, and co-branded stores, as well as through its wholesale and e-commerce platforms. The company was formerly known as adidas-Salomon AG and changed its name to adidas AG in June 2006. adidas AG was founded in 1920 and is headquartered in Herzogenaurach, Germany.
What does it do?
adidas is one of the world's two biggest sportswear brands — you almost certainly own something with those three stripes on it. They design and sell sneakers, gym clothes, football boots, and accessories like bags and sunglasses. Think of iconic products like the Stan Smith sneaker, the Samba, or the Ultraboost running shoe. They don't make most of this stuff themselves — they design it, market it heavily, and outsource the manufacturing to factories mainly in Asia.
adidas is in a genuine turnaround moment right now. After losing its massive Yeezy partnership with Kanye West in late 2022, the company was left sitting on hundreds of millions of dollars worth of unsellable inventory — a huge crisis. Investors are now watching closely to see if new CEO Bjørn Gulden can rebuild the brand and whether the sneaker boom, driven by retro styles like the Samba, can carry momentum into a full recovery.
How does it make money?
adidas makes money by selling footwear, apparel, and accessories through its own stores, its website, and wholesale partners like JD Sports or Foot Locker. Footwear is the biggest driver — it makes up roughly half of revenue. In the latest full year, the company brought in $24.8 billion in revenue, up from $23.7 billion the prior year, showing the recovery is gaining traction. They also gradually sold off their leftover Yeezy stock at a discount, which added a one-time boost to recent results.
Why do investors care?
The bull story is simple: adidas was temporarily broken by the Yeezy fallout, not permanently damaged. The brand still has enormous global recognition, a hot product cycle with retro sneakers like the Samba and Gazelle selling out consistently, and a lean new management team focused on execution. For the thesis to work, adidas needs to keep growing in North America where it has historically lagged Nike, and it needs to rebuild momentum in China, which is its most important single market and has been recovering unevenly since the pandemic.
Deep Dive
MemberA full investor briefing on adidas AG — history, leadership, risks, and outlook.