Thursday, 23 January 2025 Reading time : 3 minutes

Germany's leading index, the Dax, has made a successful start to the year, rising by almost 6.8% year-to-date and reaching a new all-time high on Wednesday (as of closing on 22 January 2025). This puts it ahead of the SMI (+5.2%) and the S&P 500 (+3.1%). 

The Dax also owes its latest record high to gains in Adidas. On Tuesday, the German sporting goods manufacturer reported surprisingly strong fourth-quarter earnings. As a result, the share price rose sharply, climbing 6% on Wednesday. 

The preliminary results show that Adidas increased quarterly sales by 19% year-over-year. The company will provide a detailed insight into its earnings and an outlook for 2025 on 5 March. 

Looking at the nine-month figures, however, Adidas appears to be performing well across the board, as the company increased sales in all divisions – footwear, apparel and accessories – in the first three months compared to the same period last year. The footwear business, which is contributing almost 60% of total sales, was particularly successful.

In addition, Adidas settled its dispute with US rapper Kanye West last autumn. The company had parted ways with him in 2022 after West made headlines with anti-Semitic remarks. With the end of the long-standing partnership, Adidas ceased production of the "Yeezy" trainers and clothing line designed by West. The shortfall in revenue from this successful collaboration left its mark, contributing to an annual loss for the sports company in 2023, according to US news channel CNN.

The expected upturn in sales in 2024 seem to be due partially to the success of the classic "Samba" and "Gazelle" trainers, which were hugely popular last year. Adidas shares were also popular on stock markets. They rose by around 29% in 2024, clearly outperforming the competition: shares in US equipment manufacturer Nike lost over 30% of their value and Puma fell by 10%.

The Barrier Reverse Convertible on Adidas, Nike and Puma combines the three sporting goods manufacturers, featuring a barrier of 60% and an annual coupon of 9.75%. 

Barrier Reverse Convertible on Sports Goods Manufacturers
9.75% p.a. BRC on Adidas, Nike and Puma
Barrier: 60%
Valor: 140 251 166

Indicative terms

 

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