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Interbank| Adidas loses the German Football Association (DFB) contract with Nike from 2027 to 2034. ADR fell -4. 6% in New York.
Adidas has been an official sponsor of the DFB for 77 years; His contract expires at the end of 2026. The DFB says Nike’s finance company offers “by far” the best. Some media outlets recommend that this amount could have reached €100 million per year.
Analysis: If this figure is true, the impact on Adidas’ sales is minimal (0. 5% of the total), but in terms of reputation, it means the loss of one of its most iconic sponsorships and is the maximum benefit of Other recent problems such as the cancellation of its alliance with rapper Kanye West, which weighed down its performance in 2023, forced the company to sell Yeezy sneakers at a low price with a negative effect on EBIT of -€700 million. Adidas recently announced its disappointing guidance for 2024, with an expected operating profit of €500 million compared to the consensus estimate of around €1. 3 billion at the time (already adjusted to €850 million) and mid-single-digit sales expansion at consistent exchange rates. The EBIT margin target of 10% in 2026 (vs. 1. 3% in 2023) will not be easy to achieve in an environment of slowing demand, negative currency effect, and sale of Yeezy’s remaining shares.
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