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adidas AG (ADDYY)

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146.85+0.44 (+0.30%)
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Neutralpattern detected
Previous Close146.41
Open145.24
Bid0.00 x 0
Ask0.00 x 0
Day's Range145.18 - 147.49
52 Week Range87.65 - 176.36
Volume21,487
Avg. Volume44,754
Market Cap57.011B
Beta (5Y Monthly)0.84
PE Ratio (TTM)32.97
EPS (TTM)4.45
Earnings DateN/A
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateMay 10, 2019
1y Target Est166.68
  • Invest in SoleSavy Stock to Get in on a Multi-Billion-Dollar Sneaker Niche
    InvestorPlace

    Invest in SoleSavy Stock to Get in on a Multi-Billion-Dollar Sneaker Niche

    As Nike (NYSE:NKE) demonstrated with its Air Jordan, the sneaker business is huge. Thanks to media hype and a rabid collector fan base, there's never been a better time to be involved in the business. However, because of the market enthusiasm, it's difficult for individual collectors to participate without getting gouged. Consumer technology platform SoleSavy plans to disrupt this paradigm, though, causing huge interest in how to invest in SoleSavy stock.Source: 2p2play / Shutterstock.com At the core of the company's business is its namesake app. Offered in both a free-for-all format along with exclusive benefits for premium members, the app connects users to the latest news and official release dates of highly anticipated sneakers. Of course, it's the premium membership, which is offered at $30 per month or $300 a year, where true aficionados receive the most benefit.As SoleSavy's pitch deck points out, popular sneakers can command ridiculous charge ups in the second-hand market. To avoid this price hike, consumers have to be front of the line when new sneakers are released. The problem is, hot sneakers sell out in seconds, benefiting only scalpers and leaving genuine collectors frustrated.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, SoleSavy levels the playing field by connecting its exclusive members with retail partners. As soon products drop or are restocked, the SoleSavy app notifies its members, allowing them to purchase in-demand footwear at MSRP, not a 50% or more markup.Because of the great value proposition, people who aren't necessarily interested in sneakers are still clamoring to invest in SoleSavy stock. Offered on equity crowdfunding platform Seedinvest.com, you now have that chance. Invest in SoleSavy Stock to Connect Brands with FansFor those who are not aware of the massive sneaker fanbase, the idea of paying a premium to know when to buy shoes may seem preposterous. But look a little deeper and you'll start to recognize why so many folks wish to invest in SoleSavy stock.First, you have the size and growth of the sneaker market. According to Value Market Research, by the end of 2020, it forecasts global sneaker sales to hit nearly $77 billion. To put this into perspective, Nike's revenue in 2019 was $37.4 billion. Its international rival Adidas (OTCMKTS:ADDYY) generated $26.3 billion last year. * 7 Travel Stocks to Buy Banking On Pent-Up Demand Moreover, Value Market Research estimates that worldwide sneaker sales will reach nearly $98 billion by 2024. Clearly, you can't grow a retail segment this large without a strong, loyal consumer base. Hence, SoleSavy serves to disrupt this space by focusing largely on the consumer experience.Personally, I believe this consumer-centric business model is the biggest catalyst for those who want to invest in SoleSavy stock. Prior to this app, it was the retail platform that profited the most from the sneaker fanbase, whether that be a producer via a direct retail channel or a secondhand market like eBay (NASDAQ:EBAY).Either way, consumers came last. With direct retail, only those with the biggest pocketbooks could gain access to the shoes. And with secondhand markets, the premiums could be outrageous.But SoleSavy took a different approach, leveraging the connections and technology of the big boys to offer far better deals to everyday collectors and users. In exchange, SoleSavy charges a small monthly fee.However, if you're a true sneaker connoisseur, the fees more than pay for themselves. Equity Crowdfunding Risks to ConsiderBefore you pull the trigger and invest in SoleSavy stock, you should consider important risk factors. First, as an equity crowdfunding play, you're tying up your money. Therefore, you must consider the opportunity cost associated with this private investing offer.And it's a big cost as well, with the minimum investment being $10,000. Further, this is the first seed in the company's funding initiative. Management intends to use the raised funds to "scale the business, expand our technology offerings and continue to monetize all aspects of the industry." While an exciting proposition, it's also very risky.Another point to consider is that while SoleSavy's growth rate is impressive, the nominal baseline may be low, depending on overhead. Though the company has more than 1,875 customers in North America, this figure needs to accelerate quickly (1,875 x $30/month = $56,250/month), especially if it's going to expand aggressively.Also, while the global sneaker market is massive, one wonders what impact the novel coronavirus will have on sentiment. Right now, purchasing sneakers is a luxury of luxuries, especially with millions of Americans facing eviction risks. Unfortunately, the timing may not be favorable to invest in SoleSavy stock. A Consumer-Driven BusinessAt the end of the day, SoleSavy is all about the consumer, not big business. That approach has appealed to its small but rapidly growing user base.As well, a quick look at Nike shares has demonstrated that the footwear and athletic apparel business is resilient, even in the face of a potential economic crisis. Naturally, this will embolden those who elect this private investing opportunity.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Invest in SoleSavy Stock to Get in on a Multi-Billion-Dollar Sneaker Niche appeared first on InvestorPlace.

  • Adidas Posts $360 Million Loss But Sees ‘Light at the End of the Tunnel’
    Footwear News

    Adidas Posts $360 Million Loss But Sees ‘Light at the End of the Tunnel’

    About 92% of its stores have reopened to the public.

  • Can Adidas Sneakers Survive a Second Wave?
    Bloomberg

    Can Adidas Sneakers Survive a Second Wave?

    (Bloomberg Opinion) -- Back in March, Adidas AG Chief Executive Officer Kasper Rorsted likened dealing with the Covid-19 outbreak to a football match. There was a great first half of the game before the virus struck. The half-time break was longer than expected, but play would eventually resume.On Thursday he showed just how damaging that halt was, but he said the tournament is now getting going again with a 1 billion-euro operating profit rebound expected in the next quarter. Adidas shares rose as much as 4.3% on Thursday, but they are still down 15% this year, underperforming larger rival Nike Inc.Indeed, the anticipation of such a strong bounce back looks too optimistic, even if Adidas did beat sales and gross margin expectations in its second quarter. It seems there’s little to guarantee things will simply get better from here. After all, Nike badly missed sales expectations in its most recent quarter.Adidas’s second quarter was buoyed by shoppers switching to online purchases with 70% of the company's stores closed at the worst point in the three months to the end of June. E-commerce sales nearly doubled.That helped limit the overall decline in sales excluding currency movements to 34%, better than the more than 40% fall the company forecast in April. The gross margin — the difference between the price at which a retailer buys and sells goods — also fell less than expected. But that didn't stop Adidas diving into the red with an operating loss of 333 million euros ($391 million) after 250 million euros of one-time charges related to the virus, including an asset impairment at Reebok.Still, in the three months through September, Adidas said it expects operating profit of between 600 million euros and 700 million euros. That would mean a recovery of about 1 billion euros from the second-quarter loss.It’s impressive that the company has been able to pivot so successfully online, taking advantage of home workers swapping suits for sweatpants and seeking out new exercise gear to go with their new workout apps. Sales are improving gradually, including in the U.S. market.Both Adidas and Nike should also benefit from increased spending on health and wellness as people shift priorities and learn to live with a health threat. Unlike those selling luxury apparel and accessories, they aren’t dependent on the travel retail sector, where demand is likely to be depressed for some time.But for Adidas, the expectation for such an outsized profit swing in the third quarter assumes that about 90% of its stores remain open, and visits to those outlets continue to pick up. With parts of the U.S. far from returning to normal and a resurgence of cases in some European markets raising fears of a second wave, that assumption might not hold.The company said its forecast takes into account an impact from consumers pulling in their purse strings. But with pressure on consumers on both sides of the Atlantic as stimulus measures come to an end, potentially accompanied by an increase in unemployment, it is possible the nascent recovery could slow. That could make it harder to reduce inventories, which rose 49% in the second quarter excluding currency movements, to a more normal level by the end of the year.Adidas has all to play for to show that its expectations are grounded in reality, not wishful thinking.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.