adidas (ADS GR) Buy: Growth at scale

Research evidence excerpt

adidas (ADS GR) Buy: Growth at scale

is sponsoring 14 teams (vs Nike at 12, Puma at 11), out of which 52-WEEK PRICE (EUR)

four are among the top ten ranked teams.

230.00

Q2 2026 earnings preview (due 30 July): We forecast a 15% sales growth rate at 175.00

constant FX in Q2 (vs Q1 +14%), which will be the fastest growing quarter since Q4 2024,

supported by a better-than-initially expected World Cup performance (contributing 5ppt to 06/25 12/25 06/26120.00

growth; EUR300m) and a strong underlying brand performance. We forecast a gross TargetHigh: 212.30price: 210.00Low: 130.85 Current: 181.70

profit margin of 51.3%, down 40bps y-o-y (still negatively impacted by FX and US tariffs) Source: LSEG IBES, HSBC estimates

and an EBIT margin of 10.6%, up 470bps y-o-y. We believe that adidas should be in a

position to raise its 2026 guidance, as we expect a constant FX sales growth rate of Akshay Gupta*, CFA

Global Luxury & Consumer Analyst

11.0% (vs management guidance of high-single digit; consensus +9.1%) and an EBIT of The Hongkong and Shanghai Banking Corporation Limited

EUR2.6bn (vs management guidance of EUR2.3bn; consensus EUR2.5bn). Separately, akshay.gupta@hsbc.com.hk

+852 2974 2980

the recent correction in oil prices should also ease concerns linked to potential margin

Anne-Laure Bismuth*

headwinds in H2 2026 and 2027. Finally, it is worth noting that visibility for potential US Head of Consumer Luxury & Sporting Goods

tariff refunds amounting to EUR300m remains limited at this stage; and if it comes HSBC Bank plc

annelaure.bismuth@hsbcib.com

through, it will be a cherry on the cake. +44 20 7991 6587

Maintain Buy: We raise our target price to EUR210 (from EUR180) on higher short-term

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is