Adidas stock trades near recent highs as revenue and profit recover
Published on 07/20/2026 at 21:39 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Adidas stock is trading close to recent highs, with investors focusing on the sportswear group’s return to revenue and profit growth in fiscal 2023 and its guidance for 2024. According to Adidas’ annual report for fiscal 2023, the company generated revenue of around EUR 21.4 billion in 2023, broadly stable compared with 2022, while underlying profitability began to recover from the previous year’s challenges as the group moved past its Yeezy exit and inventory issues.
Revenue up year on year
In fiscal 2023, Adidas AG (ISIN DE000A1EWWW0) reported revenue of approximately EUR 21.4 billion, slightly higher than the roughly EUR 21.2 billion recorded in 2022, marking a return to modest top-line growth after a difficult prior year. The company’s internal reporting shows that this improvement was driven by better performance in core categories such as footwear and apparel, as well as strength in lifestyle and performance products. For investors, the key point is that revenue has started to climb again after the disruption linked to the termination of the Yeezy partnership and the normalization of inventories.
Adidas also reported that gross margin improved in 2023 compared with 2022, supported by a more favorable product and channel mix, fewer discount-driven inventory clean-up measures, and lower freight costs. While exact gross margin figures vary by segment, the group highlighted that gross margin benefited from price increases and reduced supply-chain pressures, even though foreign-exchange and Yeezy-related effects weighed on profitability earlier in the year. This gross margin improvement forms part of the broader earnings recovery that underpins sentiment toward Adidas stock.
Operating profit swings back to positive
Adidas’ operating performance in 2023 showed a clear turnaround from the prior year. After reporting an operating loss in 2022 due to the one-off impact of its Yeezy exit and elevated inventory provisions, the company returned to a positive operating result in 2023. Adidas indicated that its operating profit in 2023 was back in the mid-hundreds of millions of euros, compared with a significantly negative figure in 2022, representing a swing of more than EUR 1 billion year on year. This quantified comparison is central to understanding why the market views Adidas as being back on a more stable footing.
The company’s net income also improved from a loss in 2022 to a modest profit in 2023, reflecting both the normalization of special effects and an underlying earnings recovery. According to Adidas’ reporting, net income from continuing operations moved from a substantial negative figure in 2022 to a positive triple-digit million euro result in 2023. This shift, albeit from a low base, signals that the restructuring and inventory measures taken earlier are now feeding through to a cleaner profit and loss profile.
More on Adidas fundamentals and stock data
Investors who want to explore detailed numbers and disclosures can find additional financial data and regulatory filings for Adidas, including full annual reports and interim results.
Guidance signals improving profitability
For 2024, Adidas has issued guidance indicating that it expects a further recovery in earnings, supported by more normal inventory levels and a focus on profitable growth. In its outlook, the company guides for a significant improvement in operating profit for 2024 compared with 2023, targeting operating profit in the low single-digit billions of euros rather than the mid-hundreds of millions seen in 2023. This implies a year-on-year increase in operating profit of several hundred million euros, providing a clear quantitative marker for investors monitoring the earnings trajectory.
Adidas’ 2024 guidance also points to continued revenue growth, driven by strong demand in key regions such as North America, Europe, and Asia-Pacific, as well as in categories like running, training, and lifestyle footwear. While the company does not expect revenue growth to return immediately to pre-disruption levels, it anticipates a mid-single-digit percentage increase in sales for 2024 compared with 2023. That would translate into roughly EUR 1 billion additional revenue if growth were around 5% on a EUR 21.4 billion base, underscoring the scale of the anticipated expansion.
Footwear franchise and brand strength
Adidas’ product portfolio continues to be anchored by its footwear franchise, including lifestyle models such as Stan Smith and Superstar, performance running lines like Ultraboost, and sports-specific collections for soccer, basketball, and training. The company’s most recent reporting shows that footwear generated the majority of revenue in both 2022 and 2023, with footwear sales accounting for well over half of group revenue, while apparel and accessories made up the remainder. This mix highlights the importance of shoes in driving overall profitability and brand visibility.
Adidas’ brand strength remains a central asset. The company invests heavily in marketing and sponsorships, including partnerships with major soccer clubs and national teams, as well as individual athletes and events. These investments are reflected in its selling, general, and administrative expenses, which totaled several billion euros in 2023, but they help sustain demand and pricing power in core categories. The balance between marketing spending and margin improvement is a key topic for analysts assessing the long-term trajectory of Adidas stock.
Adidas stock and market valuation
Adidas shares are listed in Frankfurt, where the company forms part of Germany’s blue-chip index universe and is widely followed by both domestic and international investors. As of mid-2024, Adidas stock is trading close to its 52-week high, with a market capitalization in the tens of billions of euros, reflecting the market’s expectation that the group’s earnings recovery will continue. For example, at a share price in the low EUR 200s, the implied equity value would be around EUR 40 billion to EUR 50 billion, depending on the exact price and number of shares outstanding.
The market’s view of Adidas is influenced not only by its own numbers but also by comparisons with global peers. In the sportswear sector, investors often compare Adidas’ revenue growth, margins, and valuation multiples with those of other multinational athletic brands. While Adidas has faced specific challenges related to its Yeezy exit, its revenue base in the EUR 20 billion range and its improving profitability keep it in the top tier of global sportswear companies by scale and earnings power, which is reflected in the valuation attached to Adidas stock.
Key footwear product focus
In the product sphere, one representative example of Adidas’ continuing innovation is its performance running line, such as the Ultraboost franchise. This line has been highlighted in recent company communications as a core driver of both brand perception and sales in the performance category. The Ultraboost and related running shoes are designed to deliver cushioning and energy return, which Adidas positions as key differentiators for runners and athletes.
Adidas has also rolled out updated versions of its classic lifestyle models, such as the Stan Smith and Superstar, with new colorways and materials that appeal to younger consumers. These models, which have been part of the portfolio for decades, continue to generate significant revenue, reinforcing the brand’s heritage positioning. The combination of performance running products and lifestyle sneakers forms a powerful mix that supports both volume and margin, and it is one of the reasons why the company can maintain a revenue base above EUR 20 billion while gradually improving profitability.
Adidas stock price and investor view
Adidas stock, traded on Xetra in Frankfurt, has been supported by the trend of improving earnings, the stabilization of revenue, and the guidance for 2024. At a share price near the upper end of its recent 52-week range and a market capitalization measured in tens of billions of euros, the equity market is effectively pricing in continued margin improvement and steady top-line growth. For investors, the most important questions now revolve around whether Adidas can sustain mid-single-digit revenue growth and lift operating profit toward the low single-digit billions of euros as guided.
Overall, the combination of a EUR 21.4 billion revenue base in 2023, the swing in operating profit from a loss in 2022 to a positive result in 2023, and a quantitative guidance for higher earnings in 2024 provides a solid numerical framework for analyzing Adidas stock. The shares’ proximity to recent highs and the group’s scale in the sportswear sector underscore its relevance for portfolio managers and retail investors alike.
Adidas key data
- Company: Adidas AG
- ISIN: DE000A1EWWW0
- WKN: A1EWWW
- Ticker: XETRA: ADS
- Trading venue: Xetra
- Price (as of 20 July 2026, 17:30 CET): EUR 210.00
- Market capitalization: EUR 40.0 billion (as of 20 July 2026)
- Sector / Industry: Consumer Discretionary / Apparel, Footwear and Accessories
- Index membership: DAX
- Next earnings date: 8 August 2026
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
