Shares in focus: Adidas and Puma defy Nike's influence amid supportive market environment

On Wednesday, shares in Adidas and Puma defied the disappointing outlook from US competitor Nike. While Nike's stock slumped by 10.5 percent to 47.25 dollars in pre-market US trading, the shares of the two German sportswear manufacturers recovered in a very strong overall market.

In the Dax, however, Adidas shares rose by a below-average 0.6 percent to 137.45 euros after two days of gains, while the leading German index climbed by 2 percent. In contrast, Puma jumped by an above-average 4.5 percent to 22.69 euros. The index of medium-sized companies, the MDax, gained 2.5 percent at the same time.

A trader said that in addition to general investor optimism that the war in Iran would soon be over, Adidas was primarily helped by a well-received event held by the sportswear manufacturer ahead of its quarterly results on April 29. “This shows that Nike has its own internal issues, so a direct comparison to industry peers like Adidas and Puma is not applicable. If anything, the word is that Nike's weakness is proving to be a strength for the others.”

The previous day, for instance, Jefferies analyst James Grzinic commented positively on Adidas' pre-close call. He wrote that the event confirmed a continued positive balance between the maturity of the Terrace sneaker segment and strong demand for apparel and running. According to Grzinic, the models of the new Hyperboost running shoe also appear “promising” at first glance.

Analyst Jürgen Kolb of Kepler Cheuvreux also wrote positively about Adidas. While the German company reaffirmed its annual targets, expecting stronger sales growth in the first half of the year than in the second, Nike needs more time overall.

The US group exceeded expectations in its most recent business quarter. However, the absolute development regarding the decline in sales and operating margin shows that the American company is in a repositioning process. It has become clear that a return to growth will not happen sooner than expected. This, in turn, “offers Adidas the opportunity to strengthen its market position, as the company has expanded its product range and benefits from a strong brand image.” Nike exceeded expectations in its third business quarter, but its outlook disappointed the market.

According to stock market expert Andreas Lipkow from the broker CMC Markets, the significant rise in Puma's shares on the day is likely fuelled by renewed takeover speculation in addition to the generally positive market sentiment. At the end of January, the Chinese group Anta Sports Products announced its intention to acquire a major stake. The parent company of brands such as Atomic, Fila, Jack Wolfskin, Salomon and Wilson announced about two months ago that it intended to acquire a stake of just over 29 percent from the French billionaire Pinault family, subject to regulatory approval.

This article was translated to English using an AI tool.

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