ADDDF - Adidas: Getting Started To Turn Around
2024-04-22 09:36:41 ET
Summary
- Adidas Q1 2024 earnings show 8% YoY sales growth and increased operating profit target for fiscal year 2024.
- Yeezy line contributes to strong results, generating €150 million in revenue and €50 million in operating profit.
- However Adidas still has room for improvement in its balance sheet and has the lowest ROIC in its peer group.
The Adidas Investment Thesis
In June of last year, I wrote an article about Adidas AG (ADDYY / ADDDF) in which I argued that its competitors had better long-term prospects. And I continue to believe this as Nike, Inc ( NKE ) continues to deliver higher returns on capital and better margins and is well positioned for the future....
Adidas: Getting Started To Turn Around