China Sportswear: Adidas’ Latest Narratives on the China Market

研报英文原文证据摘录

China Sportswear: Adidas’ Latest Narratives on the China Market

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02 Aug 2026 17:27:10 ET │ 12 pages

China Sportswear

Adidas’ Latest Narratives on the China Market

CITI'S TAKE

On Adidas’ 2Q26 earnings call, management highlighted the

outperformance of its Greater China biz in 2Q26 (sales: +15% YoY on L/C;

OP: +17% YoY on L/C; OPM at 27.6%, which was close to historical high of

~30%). Per Adidas management, the impact of Nike China’s recent Xiaopo Wei, CFAAC

distribution strategy pivot is “still unknown” and it is “far too early” to +852-2501-2472

assess the impact at this stage. For channel strategy, Adidas maintains its xiaopo.wei@citi.com

long-term sales-mix target to balance growth across DTC and wholesale

Vincent Young channels (vs. Nike China’s recent pivot towards online DTC, which we

deem a risky strategic move). For Citi Consumer Team’s ongoing +852-2501-2738

vincent.young@citi.com discussion on the “Implication of Nike China’s Strategy Pivot”, please

sign up for Citi-hosted China sportswear Expert Call on Aug 7

(registration) and Citi Global Sportswear Analyst Call on Aug 10

(registration). Our unchanged China sportswear sector relative pecking

order: Anta (Buy) > Li Ning (Buy) .

Narratives on 2Q26 China biz — Adidas management attributed its strong 2Q26

China biz growth to the following factors: (1) Localized Sourcing Strategy: Adidas

now sources products locally in China using Chinese currency, minimizing F/X risks

and enabling more efficient inventory replenishment; (2) Diversified Product

Portfolio: Unlike previous periods focused on basic apparel, its current product mix

has expanded to multiple sports categories with innovative technologies, creating a

more robust business foundation; (3) Strategic Marketing Initiatives: It organized