Adidas Buys Back Stock Above Market Price While Nigeria Deal Signals Brand Momentum

Adidas shares trade 25% below highs as buybacks continue, Nigeria deal signals growth, and CFO transition adds uncertainty.

The gap between what Adidas is doing operationally and what its share price is saying has rarely been wider. On Friday, the stock closed at €153.45, roughly a quarter below its 52-week high of €200.90 reached last October — even as the company presses ahead with share buybacks at prices well above current market levels and inks a high-profile sponsorship deal that underscores its push into growth markets.

Buyback Continues Despite Weak Tape

Adidas extended its share repurchase program through August, snapping up nearly 400,000 of its own shares across just three trading days. The company acquired 76,567 shares on August 10 at a volume-weighted average price of €166.4986, followed by 78,480 shares at €163.7577 the next day, and 240,596 shares at €159.9232 on August 12. That brought the second tranche of the program to 2,948,323 shares repurchased in total.

The buyback, which began in early February and was extended with a second tranche in June, signals management's commitment to returning capital to shareholders even as the stock struggles. Notably, the prices paid — between roughly €160 and €166 — sit comfortably above the current trading level, a sign that management views the shares as undervalued at present prices.

Nigeria Deal Highlights Emerging-Market Push

In a move that speaks to Adidas' commercial momentum, Nigeria's national football team will switch from Nike to Adidas starting in 2027, ending an eleven-year partnership with the American brand. The deal is worth $8.5 million annually — a significant step up from the $1.5 million Nike was paying. Adidas already operates 13 stores in Nigeria versus Nike's single location, and the agreement adds to a growing list of emerging-market wins.

The company has also signed its first partnership with a Vietnamese professional club, Hanoi FC, in a three-year deal timed to the club's 20th anniversary. On the product side, K-pop singer JENNIE is debuting as co-designer of her own adidas Originals collection inspired by ballet and streetwear, while a second collaboration with Thug Club and multiple new Samba releases — from a Kermit-green classic to a bowling variant with leopard print — keep the brand's most important revenue driver relevant with younger consumers.

CFO Transition Adds Another Variable

The most significant structural news concerns the finance chief. Birgit Kretschmer takes over as CFO on September 1, succeeding Harm Ohlmeyer, who had held the role since 2017. Kretschmer brings more than 30 years of finance experience, including 25 years within the company, most recently as CFO of Adidas International BV. Leadership changes at the top of finance always draw investor scrutiny, and doing so during a period of share-price weakness adds an extra layer of attention.

Analysts Split on Direction

The investment community remains divided on Adidas' prospects. JPMorgan reaffirmed its "Overweight" rating on August 21 with a price target of €230 — among the highest on the Street — while RBC Capital Markets reiterated its "Outperform" stance on August 19. UBS, however, cut its price target from €219 to €173 in mid-August and downgraded the stock from "Buy" to "Neutral." Goldman Sachs trimmed its target from €185 to €180 earlier in the month while maintaining a "Neutral" stance. The target range of €173 to €230 reflects how widely opinions diverge.

The consensus rating sits at "Moderate Buy," supported by nine buy recommendations against three holds and one sell. Yet the stock has fallen 15 percent over the past 30 days, suggesting the more optimistic voices have failed to convince the market. The technical picture offers little clarity: the relative strength index sits near 40, indicating neither extreme oversold conditions nor signs of stabilization.

Tariff Uncertainty Weighs

Adding to the cautious sentiment, Adidas reported in August that it expects reimbursements of between $250 million and $300 million related to US tariff payments, according to Reuters. Whether and when those refunds will actually materialize remains an open question, leaving investors to weigh a complex mix of ongoing buybacks, divided analyst opinions, and unresolved tariff issues.

The second-quarter earnings report provided further fodder for skeptics: earnings per share missed expectations while revenue beat consensus — a mixed result that helps explain the recent weakness.

For now, Adidas presents a study in contrasts. The operational story remains intact, with brand momentum in new markets, a steady stream of product collaborations, and a carefully managed leadership transition. But the market is pricing in risks more heavily than opportunities — a familiar dynamic for consumer goods companies in an environment where investors scrutinize every data point and stories about jerseys and sneakers alone no longer move share prices.