Diversification of the Portfolio Underappreciated; Raise Est. and PT

研报英文原文证据摘录

Diversification of the Portfolio Underappreciated; Raise Est. and PT

throughout the quarter Exhbit 1). We model GM down 50 bps (same as consensus); FX Shares Out (mil) 178.6

and tariffs are each ~50 bps headwind vs. 75 bps in 1Q26, while underlying improvement Market Cap. (mil) €32,612

should be similar (outperformance in DTC and jerseys sales should also help). With the Avg Daily Vol (000) 661

added WC spend, Marketing is expected €150M higher y/y and €100M+ vs. 1Q26; we Div (ann) €2.00

model 22% growth y/y (above the Street up 19%). Div Yield 1.10%

Fiscal Year End Dec

• Innovation pipeline: is there soft landing for Terrace? While Gazelle and Campus Price Performance - 1 Year

are still declining, Lifestyle accelerated sequentially in 1Q26, with ongoing strength in EUR

new Terrace styles such as Mary Jane across both Samba and Tokyo as well as new 220

executions of Samba; search interest for Samba was up over 70% in 2Q26, accelerating

vs. down LSD in 1Q26 and first positive increase since 4Q24. Adi's model is more "broad 200

and shallow" compared to NKE that is heavily concentrated in key franchises, which 180

minimizes out-sized franchise risk.

• Raise est. We raise 2Q26 EPS to €2.40 (above the Street at €2.36) and '26/'27 to 140

€9.40/€11.64 vs. €9.30/€11.28 prior. Company historically pre-announces when EBIT

beat the Street by more than 5%, accompanied by a raise to the annual outlook. The Jul-25120 Sep-25 Nov-25 Jan-26 Mar-26 May-26 Jul-26

announcement historically comes 1-2 weeks prior to the full release--last time ADS

Source: Bloomberg

pre-announced was 3Q25 on 10/21/25. Given Marketing line item potentially ahead of

consensus given the WC spend, it's less clear if we get a pre-announcement next week--

although we think sales beat matters more.