Adidas: Warning signals at the sports equipment manufacturer

Last Updated: 16. Januar 2024By

You may know the company from Herzogenaurach as the outfitter who helped Germany’s national football team win four World Cup titles with its shoes. In recent years, however, the success story has suffered a setback due to the Corona lockdown and the image problem surrounding rapper Kanye West. Critics argue that the company’s management continued to work with him despite numerous scandals involving sexism and racism allegations for too long. The business was simply doing too well. It was only when other business partners began to pull the plug that Adidas took action.

Sharply reduced profits Adidas is still Germany’s number one in the fashion industry and athletes worldwide trust the brand with the three stripes. However, a look at the fundamental figures reveals the company’s struggles. The current forecast for 2023 is a decrease in sales by 1 percent. The profit is expected to be close to zero. In its last outlook, Adidas explicitly names existing macroeconomic challenges and geopolitical tensions that pose risks of recession in Europe and North America, as well as slowing down the recovery in the People’s Republic of China. For the following years, the bars for earnings are slightly longer again, which speaks to a certain wishful thinking considering the circumstances.

Adidas company development Source:

How is the Adidas stock doing from a technical perspective? Overall, the stock has been on an upward trend in the past year. Let’s focus on the price development since mid-December. We can see two gap downs in quick succession, followed by a bear flag that was broken with the last daily candle, confirming the scenario.

Adidas stock (ISIN DE000A1EWWW0) – 1 year in daily chart; Source:

Conclusion The Adidas stock has performed well for a long time. However, it is currently best to stay away from it.