The shares of the two German sporting goods manufacturers have been in a descent since the beginning of the year. In view of the weak consumption mood and the uncertainty of tariffs, no wonder, but now a recovery of the adidas papers seems to indicate, while Puma is further punished by investor: inside. This is how analyst evaluate: the location inside.
Shared shares
Puma SE share has fallen by almost 55 percent to 20.05 euros since the beginning of the year, the securities of the competitor Adidas AG lost 25 percent to EUR 176.40. The negative course development of the sports group reflects the tense situation in the global fashion industry.
A weak consumption mood is based on clothing companies, plus potentially higher costs due to the unpredictable customs regulations worldwide.
However, contrary to this development in the course of the year, signs of relaxation at Adidas are indicated, which also reflect on the recently positive business developments. The shares of the sporting goods manufacturer were in demand last week thanks to the optimistic voices of analyst: inside.
The adidas shares rose by 5.4 percent to 170.45 euros last week and were one of the winners in the German leading index DAX. Meanwhile, the negative run for competitor Puma continues according to a critical assessment. With a discount from 7 percent to 19.92 euros, the papers were among the largest losers in the MDAX of medium -sized stock market values.
Did Adidas reach the valley sole?
James Grzinic from the Jefferies analysis house expressed a purchase recommendation and referred to the “brutal loss of value” of the past few weeks and months. However, Grinic sees many growth drivers and a further expansion of the market share in the upcoming quarters – despite uncertainties with a view of the USA.
From the Jefferies expert’s point of view, Adidas is even a winner in relation to US customs policy and the weakness in the dollar, especially since the DAX group makes 80 percent of its turnover outside of North America. Grinic can well imagine an increase in the corporate forecast for 2025 in October to present the figures for the third quarter. In July, Adidas had retained the outlook after the half-year figures, including because of the US risks, which the shareholders were badly disappointed at that time.
Opposite developments
Despite the macro-economic and global political risks, the sporting goods group has developed positively in the current financial year. The first quarter was already better than expected, in the second quarter Adidas was unexpectedly increasing the win.
The net profit that is attributable to the shareholders: net profit was almost doubled. It grew by 94.6 percent to 369 million euros. The plus owed the company to persistently strong demand for its main brand Adidas, whose revenues increase by twelve percent in the second quarter.
The situation is different with competitor Puma. The first quarter already started with a sales warning. When submitting the results for the second quarter, the Adidas rival significantly corrected the annual forecast. For 2025, corporate management now expects a decline in sales in the low double -digit percentage range. So far, growth in the low to medium single -digit percentage range had been on schedule.
The different business development of the two sports groups could explain the stronger price losses at Puma since the beginning of the year. The question now is whether there can really be a trend reversal of the adidas papers.
Puma graded
JPMorgan analyst Wendy Liu, who put Adidas the stamp “Positive Catalyst Watch”, provided additional tailwind and maintained the vote “Overweight”. Liu assumes that the results of the third quarter should drive the evaluation again. The expectations had been adequately caught up by the previous course weakness in the current year. At the current level, the expert sees an attractive relationship between opportunities and risks.
Liu also praised Adidas for good management of the product portfolio and disciplined cost control, which supports profitability this and the coming year. A weakness in the Terrace products from Adidas can be expected, but this could be compensated for by other areas. Jefferies expert Grzinic also considers the concerns of investors to be exaggerated with regard to high dependence on terrace products that approached their zenith.
In return, however, JPMorgan analyst Liu looks critically at Puma and classified the MDAX company from “neutral” on “Underweight”. The realignment of the sporting goods manufacturer under new leadership is lengthy and with immense implementation risks. Liu recalled a previous restructuring in 2013 that took five years. At the same time, the competition for Puma remains hard, even more difficult by the comeback from Nike.
According to JPMorgan expert Liu, the Puma share has benefited somewhat from takeover fantasy in the past few days. In this regard, however, she also sees some pitfalls. At the end of August, the Bloomberg news agency reported on insiders: Inside that the French billionaire family of Pinault was selling its participation in the sporting goods manufacturer Puma Niedenke. (dpa/fashionunited)
- Adidas shows signs of recovery after a difficult year, supported by positive assessments and improved business figures.
- Puma, on the other hand, continues to experience price losses due to the reduced annual forecasts and critical reviews, which indicates a different business development of the two sporting goods manufacturers.
- Analyst: Inside, adidas praise for good management and cost control, while you see risks in realignment and strong competition in Puma.