adidas AG

2021-03-10 — "Own the Game" strategy launched

adidas unveils its five-year "Own the Game" growth strategy targeting 2025, centered on brand credibility, five sport categories, and a doubling of e-commerce and direct-to-consumer channels. The company commits over €1 billion in digital investment, with targets of roughly 8–10% sales compound annual growth and margin expansion [43], [44].

Investors frame this as a clear growth and re-focus plan—a strategic reset designed to close the competitive gap through DTC and digital channels. Credibility and execution become the primary watchpoints. The stock enters a constructive recovery phase as markets reward the explicit strategic targets.

2021-08-12 — Sale of Reebok to Authentic Brands Group

adidas agrees to sell Reebok to Authentic Brands Group for up to €2.1 billion, freeing capital to focus on the core adidas brand and return most proceeds to shareholders [16], [23].

The market interprets this as portfolio simplification and a cash-return signal. Reduced distraction and freed capital reinforce the growth narrative. The stock registers a short-term tactical uptick while maintaining an overall constructive trend.

2022 Mar — Russia operations suspended and wound down

Following the Ukraine invasion, adidas suspends stores and e-commerce in Russia, later moving to wind down operations entirely. The company faces material revenue exposure of approximately €100–250 million in 2022 [37], [39], [40].

Geopolitics creates an immediate revenue and earnings hit alongside execution burden. Investors move to quantify one-off costs but generally accept the reputational imperative. The market re-prices geopolitical risk into near-term earnings, driving a drawdown and increased volatility.

2022 Aug–Nov — CEO succession: Bjørn Gulden named successor

Kasper Rørsted announces his departure in 2023. Bjørn Gulden, CEO of Puma, is named successor with appointment confirmed November 8, 2022, and effective January 1, 2023 [71], [68].

Investor reaction splits between relief and skepticism. Optimism centers on Gulden's Puma turnaround experience; skepticism focuses on how quickly cultural and operational fixes will scale at adidas. The stock experiences volatility while attempting to form a base amid a broader downtrend. The succession acts as a potential structural catalyst.

2022 Oct 7–25 — Yeezy partnership terminated

adidas places the Yeezy partnership under review following public controversies, then terminates it on October 25, 2022. Production, sales, and payments halt immediately, with expected near-term earnings impact of €200–300 million and larger revenue impact extending into 2023 [4], [1], [2].

The decision is decisive on reputational grounds but carries enormous commercial cost. Market perception shifts from long-term growth story to crisis management and capital preservation. Investors fear substantial inventory write-offs and margin damage. The stock experiences a sharp drawdown as the market reprices the sudden loss of a high-margin, high-demand product line.

2022 Oct–Nov — Inventory overhang, China weakness, guidance cuts

Preliminary Q3 results and subsequent updates reveal elevated inventories (up 63% year-over-year at Q3 end), deteriorating traffic in Greater China, and higher clearance activity. Full-year guidance is cut with material one-offs announced [61], [57].

Investor confidence falls sharply. The narrative shifts to operational execution—inventory management, supply chains, and China weakness—compounded by the Yeezy shock. Many see a near-term value-trapping risk. The stock enters a sustained downtrend as guidance revisions and inventory risk are priced in.

2023 Jan–Mar — New CEO in place; FY2022 results and dividend cut

Bjørn Gulden assumes the CEO role on January 1, 2023. adidas reports FY2022 results reflecting geopolitical impacts and company-specific hits, including an operating loss in Q4 and Yeezy-related charges. The board proposes a sharply reduced dividend of €0.70 versus €3.30 previously, signaling a difficult 2023 ahead [68], [58], [79].

The market views 2023 as a transition year. Recognition emerges that leadership change was necessary, though a multiyear recovery is required. Tone shifts from panic to cautious watchfulness. The stock enters a bottoming process with high intraday volatility; longer-term holders begin monitoring for operational stabilization signals.

2023 Q3–Q4 — Partial Yeezy inventory monetisation; outlook improves

adidas sells portions of remaining Yeezy inventory through limited drops and reports better-than-expected underlying performance in H2 2023. The company reduces previously guided potential write-offs and improves its operating loss outlook for 2023 [62].

Investors see de-risking in action: inventory monetisation, fewer write-offs than feared, and initial traction under new management. The narrative evolves from "value trap" to "turnaround in progress." The stock experiences a relief rally from its base, transitioning into an early uptrend as sentiment improves.

2024 Jan 31 — Yeezy inventory write-off decision

adidas announces it will not write off the vast majority of Yeezy inventory and plans to sell remaining product at least at cost in 2024. Expected 2023 and 2024 write-offs are materially reduced versus worst-case scenarios [60].

Tail risk diminishes substantially. Legal and reputational issues persist, but the earnings shock is contained. Investor sentiment turns incrementally positive on near-term earnings leverage. The stock breaks out and continues rallying as the market rewards lower write-off risk.

2024 Mar 13 — 2023 results reported; dividend stability maintained

adidas reports a 2023 net loss—the first annual loss in decades—but states performance was better than feared. The Executive and Supervisory Boards propose maintaining the dividend at €0.70 while guiding cautious improvement ahead [90], [91].

The narrative becomes "stabilization under new management." Operational improvements are visible, though cautions remain around North America inventory cycles. Sentiment shifts from panic to measured confidence. The stock consolidates with higher lows as execution evidence accumulates and the trend becomes increasingly constructive.

2024–2025 — Legal and litigation developments resolved

Protracted legal and claims activity around the terminated Yeezy partnership gradually resolves through settlements, claim withdrawals, and court rulings and appeals. A notable appeal ruling in late 2025 further reduces legal overhang [7], [5].

Progressive removal of legal uncertainty eliminates a key overhang. Investors view resolved litigation as supportive to valuation and capital allocation clarity. The stock enters a renewed uptrend with fewer headline-driven selloffs as the overhang diminishes.

2026 Mar 4 — CEO contract extension through 2030

adidas extends Bjørn Gulden's appointment as CEO through December 31, 2030, signaling formal board confidence in the turnaround path [78].

The extension indicates that management and board believe the strategic reset and operational fixes are sustainable. Investor perception swings further toward consolidation and longer-term recovery. The stock maintains a sustained multi-quarter uptrend with higher highs and higher lows in its technical structure.

2026 Jul 11 — Current state

adidas trades at 181.85.

The market prices in material de-risking of the Yeezy inventory issue, stabilized operations under Gulden, monetised stranded stock, and a gradual path back to margin recovery. The narrative reads as "stabilized growth and recovery" rather than crisis [60], [90], [78]. Technicals show a clear uptrend with a breakout from the post-crisis base, consistent with an established recovery phase and momentum-driven setups.