Own the Game: Adidas’s new five-year plan

by Finploris
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Today Adidas released its earnings and medium-term strategy. The German sportswear company is targeting to double its e-commerce sales up to 9 billion euros a year by 2025 with an operating profit margin of 12-14%. Investors were looking for specifications how sales growth will be revitalized after suffering from store closures during the coronavirus pandemic and collapsed sales and profitability. The new five-year strategy, called “Own the Game”, targets making apparel as well as shoes more sustainable and annual sales growth in the high single digit range.

CEO Kasper Rorsted announced he will streamline operations and make the supply chain more agile. Additionally, he plans to invest more than 1 billion euros in the company’s digital transformation and 1 billion euros more on sponsorship and marketing. Meanwhile, the company faces strong competition from resurgent Under Armour and from fast-growing Nike, the world’s biggest sportswear.

Adidas’s share price soared as much as 2,76% today but remains below pre-pandemic levels. Within a year the stock has gained about 31,36%.

Adidas, Nike and Under Armour Chart

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