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Adidas

Adidas Soars 8% on Surging Profit & Upgraded GuidanceAdidas ( OTC:ADDYY ), the German sportswear giant, has sent shockwaves through the market with an unexpected surge in first-quarter profits and a bold revision of its full-year guidance. Buoyed by robust sales performance and strategic initiatives, Adidas ( OTC:ADDYY ) has captured investor attention by raising expectations for revenue and operating profit in 2024. 1. Profit Surge and Upgraded Guidance: Adidas' first-quarter profit has witnessed a remarkable year-on-year increase, propelling the company to revise its full-year guidance upwards. With an 8% jump in shares reflecting investor confidence, Adidas ( OTC:ADDYY ) now forecasts a mid-to-high-single-digit growth in currency-neutral revenues for 2024, signaling optimism and resilience in the face of market challenges. 2. Strategic Inventory Management: Adidas' decision to divest its Yeezy inventory following the split with rapper Kanye West has proven to be a strategic masterstroke. Anticipating additional sales of around 200 million euros from the remaining Yeezy inventory, Adidas ( OTC:ADDYY ) has demonstrated agility and foresight in optimizing its product portfolio to drive profitability and shareholder value. 3. Operational Resilience and Growth Momentum: Despite facing headwinds from unfavorable currency effects, Adidas' first-quarter operating profit soared to 336 million euros, showcasing operational resilience and efficient cost management. Analysts anticipate a steadily improving sales trajectory throughout the year, fueled by the momentum of Adidas' core brand and strategic partnerships with marquee sporting events. 4. Brand Momentum and Market Perception: UBS analysts highlight Adidas ( OTC:ADDYY ) as one of the "best earnings momentum stories in the space," underscoring the brand's rapidly accelerating momentum and market appeal. With a packed summer sporting calendar and investments in performance shoes, Adidas ( OTC:ADDYY ) is poised to capitalize on consumer demand and solidify its position as a global sportswear leader. 5. Strategic Partnerships and Product Innovation: Adidas' partnerships with high-profile events like the Olympics, Paralympics, EURO 24, and Copa events further bolster its brand visibility and market penetration. The focus on performance shoes and the resurgence of the Terrace footwear brand signal Adidas' commitment to innovation and meeting evolving consumer preferences. Technical Outlook Adidas ( OTC:ADDYY ) stock is riding hard on the bullish train with a positive Relative Strength Index (RSI) of 67.12 indicating bullish momentum. The stock is trading above the 200, 100 & 50- Day Moving Averages respectively.
OTC:ADDYYLong
by DEXWireNews
Foot Locker Faces Investor Skepticism as Profit Outlook DipsFoot Locker ( NYSE:FL ) finds itself in the spotlight as shares plummet by approximately 29% following the retailer's announcement of a profit outlook below Wall Street expectations for 2024. The dramatic drop in share price reflects investor concerns over the company's planned investments aimed at bolstering demand, which are projected to weigh on profit margins in the near term. Despite a solid holiday quarter, Foot Locker's ( NYSE:FL ) decision to ramp up investments across its business has cast doubt on the timeline for achieving its long-term profit margin targets. Disappointingly, the retailer now anticipates reaching its margin goals two years later than previously expected, further dampening investor sentiment and dashing hopes of a swift recovery in profitability. Foot Locker's ( NYSE:FL ) "Lace Up" strategy, initiated in March last year, has yielded some positive results, notably in improving the digital business and driving full-price sales. However, the need to clear out excess inventory through markdowns has placed additional strain on profit margins, exacerbating the impact of planned investments on the bottom line. Chief Financial Officer Mike Baughn's announcement of another year of significant investment in 2024, coupled with the decision to forgo resuming dividends, underscores the company's commitment to long-term growth initiatives. However, the prospect of lower discounts and ongoing margin pressure in the first quarter poses challenges in managing consumer expectations and sustaining demand. Analysts, including Zachary Warring from CFRA Research, have expressed skepticism about Foot Locker's ability to deliver consistent top and bottom-line growth in the evolving retail landscape. Warring's downgrade of the stock's rating to "strong sell" highlights the prevailing concerns among investors regarding the company's strategic direction and execution capabilities. Despite these challenges, Foot Locker ( NYSE:FL ) remains optimistic about the resilience of sneaker demand, fueled by steady interest in popular brands like Nike, Adidas, and New Balance. Projections for full-year same-store sales growth above market estimates signal potential opportunities for the retailer to capitalize on consumer preferences and drive revenue growth amidst a challenging operating environment. As Foot Locker ( NYSE:FL ) navigates the complexities of the retail landscape and charts a course towards sustainable profitability, investor confidence hangs in the balance. The company's ability to effectively execute its growth strategy and adapt to changing consumer dynamics will be critical in shaping its future trajectory and regaining investor trust in the long run.
NYSE:FLShort
by DEXWireNews
Adidas - Outlook downgrade supports a bearish thesis Adidas is another company confirming what we laid out some time ago - a trouble brewing during the current earning season, supporting our notion about the stock market progressing in the second stage of the downtrend. That being said, the company reported its quarterly earnings, after which the stock fell approximately 10%. The report highlighted deteriorating demand and adjustment of the outlook for the rest of 2022 while also pointing out a build-up in inventories. We expect the same trend to continue among other companies and strengthen during the next earning season concerning Q4 2022. Therefore, we voice a word of caution to investors as this will lead the market slowly but surely into the 3rd stage of the bear market. Illustration 1.01 Moving averages continue to reflect the bearish conditions on the daily chart of Adidas stock. Technical analysis - daily time frame RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish but also reaching oversold levels for the short term. Illustration 1.02 The weekly chart of Adidas also shows bearish conditions between two moving averages. However, the price deviated too far from the 20-week SMA, making a case for a short-term bounce toward it. Technical analysis - weekly time frame RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish but also reaching oversold levels for the short term. Please feel free to express your ideas and thoughts in the comment section. DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
XETR:ADSShort
by Tradersweekly
14
ADIDAS - BEARISH SCENARIOThe lowered profit margins, decreased demand, disruption in the supply chains, and increase of the interest rates by the central banks, are among the factors that caused a headache to the investors in the German sportswear company. The direction of the trend is still valid and the long squeeze is more likely to continue to the 90 support level Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.
XETR:ADSShort
by legacyFXofficial
Adidas , Long view The curve for Adidas shares has been upwards since mid-May. At first, it seemed as if buyers were running out of Amo in the area of the € 220 mark, but in the past few days the share has regained momentum. In the meantime, investors have caused the price to rise to EUR 241.10. Until the pre-crisis level of 282.45 euros was reached, however, more than 17 percent is still missing. At the moment, however, during the past one or two days, investors are primarily interested in positive topics. Because of this sentiment, the stock receives a “hold” rating today. In-depth and automatic analyzes of the communication have shown that lately "buy" signals have been the main focus. This gives Adidas a Buy Signal based on the investor sentiment barometer. Good Luck .
XETR:ADSLong
by MassineFariss