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ADIDAS AG

adidas

Adidas designs, develops, produces, and markets athletic and leisure apparel, footwear, accessories, and sports equipment. Under its eponymous brand, it produces apparel for competitive athletics, casual activewear, and casual fashion. Adidas sells its products in more than 160 countries through nearly 1,900 owned retail stores, 15,000 mono-branded franchise stores, 150,000 wholesale doors, and owned e-commerce that is available in 67 countries. The company was founded in 1949 in Germany.

adidas AG

Crocs, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/crox#NASDAQ">CROX</a>) is scheduled to release second-quarter 2024 results on Aug 1 before market open. The Zacks Consensus Estimate for revenues is pegged at $1.10 billion, indicating a rise of 2.7% from the prior-year reported figure.
The consensus estimate for earnings per share has remained stable in the past 30 days at $3.54. The estimate indicates a drop of 1.4% from the year-ago period&#39;s reported number.
The Broomfield, CO-based company has a trailing four-quarter earnings surprise of 17.1%, on average. In the last reported quarter, its bottom line surpassed the Zacks Consensus Estimate by 34.2%.
<h3>Key Factors to Note</h3>
Crocs&#39; second-quarter sales are likely to have benefited from the solid consumer demand across the Crocs and HEYDUDE brands, backed by effective pricing actions. Also, strength in clogs, sandals and personalization is an added positive. The company&#39;s Jibbitz business has also been doing well for quite some time now, backed by growth in Asia.
Additionally, lower inbound freight costs, coupled with favorable ocean freight rates and lower promotional activity, are expected to have bolstered gross margins during the quarter. On its last quarter&#39;s earnings call, the company expected revenue growth of 1-3% year over year at constant currency for the second quarter. It had projected the Crocs brand&#39;s revenues to grow 6-8% year over year while the HEYDUDE brand&#39;s revenues were anticipated to plunge 20-23%. Management had envisioned adjusted earnings to be in the range of $3.40-$3.55 per share and the adjusted operating margin to be 26.5%.
However, Crocs has been facing challenges related to the operating environment and rising costs associated with the HEYDUDE acquisition. Also, investments in distribution and logistics have been acting as deterrents. Inflation, higher interest rates and geopolitical tensions are other concerns. The company has been struggling with higher SG&amp;A expenses for a while now, driven by investments in talent, marketing and DTC. These limitations are likely to have contributed to reduced profitability.
<h3>Valuation Picture</h3>
From a valuation perspective, Crocs offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 9.40x, which is below the five-year high of 34.18x and the Textile - Apparel industry&#39;s average of 11.79x, the stock offers compelling value for investors seeking exposure to the sector.
The recent market movements show that Crocs&#39; shares have risen 21.5% in the past six months against the industry&#39;s 23% decline.
<h3>Zacks Model</h3>
Our proven model doesn&#39;t conclusively predict an earnings beat for Crocs this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that&#39;s not the case here.
<div class="chart_embed">
<h3>Crocs, Inc. Price and EPS Surprise</h3>
<img alt="Crocs, Inc. Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/eb/1721994673.png" style="height:263px; width:544px" title="" />
Crocs, Inc. price-eps-surprise | Crocs, Inc. Quote
</div>
Crocs currently has an Earnings ESP of 0.00% and a Zacks Rank of 2.
<h3>Stocks Poised to Beat Earnings Estimates</h3>
Here are some companies, which according to our model, have the right combination of elements to post an earnings beat:
Adidas (OTC: <a class="ticker" href="https://www.benzinga.com/stock/addyy#OTC">ADDYY</a>) currently has an Earnings ESP of +2.39% and a Zacks Rank of 2.
ADDYY is likely to register bottom and top-line growth when it reports second-quarter results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $6.4 billion, indicating 9.2% growth from the figure reported in the year-ago quarter.
The consensus estimate for ADDYY&#39;s earnings is pegged at 69 cents a share, indicating a 165.4% rise from the year-ago quarter&#39;s actual. The consensus mark has risen significantly from 20 cents per share pegged in the past 30 days.
MGM Resorts International (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mgm#NYSE">MGM</a>) currently has an Earnings ESP of +15.35% and a Zacks Rank of 3. MGM is likely to register bottom and top-line growth when it reports second-quarter&nbsp; results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.2 billion, indicating 6% growth from the figure reported in the year-ago quarter.
The consensus estimate for MGM Resorts&#39; earnings is pegged at 66 cents a share, implying an 11.9% increase from the year-earlier quarter. The consensus mark has moved down by a penny in the past seven days.
Ralph Lauren (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rl#NYSE">RL</a>) currently has an Earnings ESP of +0.56% and a Zacks Rank of 3. RL is likely to register a top-line decrease when it reports first-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.5 billion, indicating a 0.6% drop from the figure reported in the prior-year quarter.
The consensus estimate for Ralph Lauren&#39;s earnings is pegged at $2.45 per share, implying a 4.7% jump from the year-ago quarter. The consensus mark has moved up a penny in the past seven days.
<a href="https://www.zacks.com/stock/news/2309825/crocs-crox-q2-earnings-coming-up-what-you-should-know?cid=CS-BENZ-FT-analyst_blog|earnings_preview-2309825">To read this article on Zacks.com click here.</a>

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CROX

Crocs Q2 Earnings Coming Up: What You Should Know

Carter&#39;s, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cri#NYSE">CRI</a>) is scheduled to release second-quarter 2024 results on Jul 26 before the opening bell. The branded marketer of apparel, exclusively for babies and children in North America, is likely to witness a decline in the bottom and top lines when it reports the quarterly numbers.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $566.8 million, indicating a fall of 5.6% from the figure reported in the year-ago quarter. The consensus estimate for quarterly earnings, which has remained unchanged at 45 cents per share in the past 30 days, indicates a decrease of 29.7% from the year-ago quarter&#39;s reported figure.
The company has a trailing four-quarter earnings surprise of 26.6%, on average. In the last reported quarter, CRI&#39;s bottom line beat the Zacks Consensus Estimate by 47.8%.
<h3>Factors to Note</h3>
Carter&#39;s has been reeling under inflationary pressures, which have been affecting consumers&#39; discretionary spending. The second-quarter performance is likely to have been hurt by inflation, elevated interest rates and the suspension of pandemic-related stimulus payments to child-care centers, thereby leading to soft demand for the company&#39;s products. In addition, higher selling, general and administrative expenses (SG&amp;A), reflecting investments in new stores and higher store payroll expenses, are expected to have strained margins and reduced profitability. Also, soft online sales trends are anticipated to have further weighed on the company&#39;s quarterly numbers.
Management had projected second-quarter net sales to be in the range of $560-$570 million, down from $600 million recorded in the year-ago quarter. This included declines of mid-to-high single-digits in the U.S. Retail, low-to-mid single-digits in the U.S. Wholesale and mid-to-high single-digits in the International segments&#39; sales. Management had envisioned adjusted earnings per share to be in the range of 35-45 cents, indicating a decline from 64 cents reported in the year-ago quarter. Carter&#39;s anticipated an adjusted operating income of $25-$30 million for the impending quarter, indicating a drop from $38 million recorded in the year-ago quarter.
Our model predicts a sales drop of 5.7% in the U.S. Retail, 4.8% in the U.S. Wholesale and 6.1% in the International segment. We expect adjusted operating income to plunge 34% year over year to $25 million.
On the flip side, Carter&#39;s is making efforts to maneuver such challenges. The company has been implementing measures like improved pricing and optimized inventory management, apart from strengthening its e-commerce capabilities. Some other notable efforts include expanded omnichannel facilities, including curbside pickup, same-day pickup, buy online and pickup at store, and ship from store. CRI has been experiencing higher-than-expected demand in its U.S. wholesale business for a while.
<h3>Valuation Picture</h3>
From a valuation perspective, Carter&#39;s offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 9.57x, which is below the five-year high of 21.14x and the Shoes and Retail Apparel industry&#39;s average of 20.16x, the stock offers compelling value for investors seeking exposure to the sector.
However, the recent market movements show that CRI&#39;s shares have fallen 14.1% in the past six months compared with the industry&#39;s 22% decline.
<h3>What the Zacks Model Unveils</h3>
Our proven model doesn&#39;t conclusively predict an earnings beat for Carter&#39;s this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that&#39;s not the case here.
<div class="chart_embed">
<h3>Carter&#39;s, Inc. Price and EPS Surprise</h3>
<img alt="Carter's, Inc. Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/b8/1721739193.png" style="height:263px; width:537px" title="" />
Carter&#39;s, Inc. price-eps-surprise | Carter&#39;s, Inc. Quote
Carter&#39;s currently has an Earnings ESP of 0.00% and a Zacks Rank of 3.
</div>
<h3>Stocks Poised to Beat Earnings Estimates</h3>
Here are some companies, which according to our model, have the right combination of elements to post an earnings beat:
Adidas (OTC: <a class="ticker" href="https://www.benzinga.com/stock/addyy#OTC">ADDYY</a>) currently has an Earnings ESP of +0.05% and a Zacks Rank of 2.
ADDYY is likely to register bottom and top-line growth when it reports second-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $6.4 billion, indicating 9.2% growth from the figure reported in the year-ago quarter.
The consensus estimate for ADDYY&#39;s earnings is pegged at 69 cents a share, indicating a sharp rise from earnings of 26 cents a share reported in the year-ago quarter. The consensus mark has risen from 42 cents per share in the past 30 days.
MGM Resorts International (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mgm#NYSE">MGM</a>) currently has an Earnings ESP of +15.35% and a Zacks Rank of 3. MGM is likely to register bottom and top-line growth when it reports second-quarter results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.2 billion, indicating 6% growth from the figure reported in the year-ago quarter.
The consensus estimate for MGM Resorts&#39; earnings is pegged at 66 cents a share, implying an 11.9% increase from the year-earlier quarter. The consensus mark has moved down by a penny in the past seven days.
Planet Fitness (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/plnt#NYSE">PLNT</a>) currently has an Earnings ESP of +1.24% and a Zacks Rank of 3. PLNT is likely to have register bottom and top-line growth in its second-quarter results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $294.4 million, indicating 2.8% growth from the figure reported in the year-ago quarter.
The consensus estimate for Planet Fitness&#39; quarterly earnings is pegged at 66 cents per share, indicating a 1.5% rise from the year-ago quarter. The consensus mark has risen by a penny in the past 30 days.
<a href="https://www.zacks.com/stock/news/2307006/carter-s-cri-q2-earnings-coming-up-what-s-in-the-cards?cid=CS-BENZ-FT-analyst_blog|earnings_preview-2307006">To read this article on Zacks.com click here.</a>

PLNT

Carter's Q2 Earnings Coming Up: What's in the Cards?

Guidance

ADDDF

Adidas Continues To Expect Unfavorable Currency Effects To Weigh Significantly On Company's Profitability This Year; Excluding Yeezy Sales In Both Years, Currency-Neutral Revenues Increased 16% During Quarter; These Effects Are Negatively Impacting Both Reported Revenues And Gross Margin Development In 2024

Adidas Increases Its FY Guidance Following Better-Than-Expected Q2 Results; Assumes Sale Of Remaining Yeezy Inventory During Remainder Of Year To Occur On Average At Cost; This Would Result In Additional Sales Of Around €150 Million And No Further Profit Contribution During Remainder Of Year; Revenues Grew 9% To € 5.822 Billion (2023: €5.343 Billion)

Adidas AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ADDYY#OTC">ADDYY</a>) is reportedly expected to post impressive second-quarter sales and its highest profit margin in three years, driven by the success of its low-rise, multi-colored Samba and Gazelle sneakers.
In contrast, Nike Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) is facing a <a target="_blank" href="https://www.benzinga.com//node/39546190" rel="noreferrer noopener">forecasted decline in annual sales</a>, causing investor concerns about its market position relative to its competitors.
Though Nike&#8217;s shares dropped following the weak forecast, Adidas&#8217; shares remained stable, reflecting investor optimism about Adidas&#8217; growth potential, Reuters reported.
The report cited analyst Simon Irwin from Tanyard Advisory, who stated, &#8220;Nike, in terms of product and message, is very much off its game and Adidas is having a bit of a moment.&#8221;
Nike plans to launch affordable sneakers <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39683071/whats-going-on-with-sneaker-giant-nikes-shares-today" rel="noreferrer noopener">globally to regain its market momentum</a>. Meanwhile, Adidas continues to captivate consumers with new colors and limited editions of its iconic Samba and Gazelle shoes.
Google Trends data reveals a significant rise in online searches for &#8220;Adidas Samba,&#8221; surpassing &#8220;Nike Air Force 1&#8221; searches in recent months, the report highlighted.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/06/39509392/adidas-bribery-allegations-lead-to-staff-exits-in-china" rel="noreferrer noopener">Adidas Bribery Allegations Lead To Staff Exits In China</a>
Analysts predict that Adidas will achieve a profit margin of 51.4% in the second quarter, its highest in three years, with a 4.5% increase in quarterly revenue to 5.6 billion euros ($6.1 billion), per the report.
However, the analysts cautioned against assuming a return to &#8220;golden days of very high margins&#8221; due to weak demand in China and heightened competition.
Despite its success, Adidas faces competition from emerging brands like Hoka, Lululemon Athletica Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LULU#NASDAQ">LULU</a>), New Balance, and On Running, which collectively held a 35% global market share in 2023.
Irwin noted that Nike&#8217;s strategy to focus on direct-to-consumer sales has allowed smaller brands to gain market share, contrasting with Adidas&#8217; efforts to strengthen ties with wholesalers under CEO Bjorn Gulden.
Wall Street analysts suggest a potential management shake-up at Nike ahead of its investor day this fall. Additionally, the upcoming Euros soccer championship is expected to boost demand for sportswear in Europe, the report added.
Price Action: ADDYY shares closed lower by 1.17% at $117.14 on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39622922/nike-confronts-market-and-product-transition-risks-analyst-warns" target="_blank" rel="noreferrer noopener">Nike Confronts Market And Product Transition Risks, Analyst Warns</a></li>
</ul>

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LULU

Nike's Struggles Highlight Adidas' Market Gains In Q2: Report

The Zacks Shoes and Retail Apparel industry continues to deal with hardships from elevated costs, reduced spending trends on discretionary items and increased marketing investments. These headwinds have been the key burdens on the participating companies&#39; profits. Additionally, adverse currency movements threaten industry players due to their worldwide presence. 
However, the industry looks lucrative owing to rising consumer awareness about leading a healthy lifestyle, which has resulted in positive demand trends for activewear and athletic shoes. New and innovative designs have been the key drivers for the industry participants. Players focused on product innovation, store expansion, digital investments and omnichannel growth are expected to gain. Investments in products and e-commerce portals bode well for players like Adidas AG (OTC: <a class="ticker" href="https://www.benzinga.com/stock/addyy#OTC">ADDYY</a>), Skechers (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/skx#NYSE">SKX</a>), Caleres Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cri#NYSE">CRI</a>) and Wolverine World Wide (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/www#NYSE">WWW</a>).
About the Industry
The Zacks Shoes and Retail Apparel industry comprises companies that design, source and market clothing, footwear and accessories for men, women and children under various brand names. Product offerings of the companies mostly include athletic and casual footwear, fashion apparel and activewear, sports equipment, bags, balls, and other sports and fashion accessories. The companies showcase their products through their branded outlets and websites. Some companies distribute products via other retail stores, such as national chains, online retailers, sporting goods stores, department stores, mass merchandisers, independent retailers and catalogs.
A Look at What&#39;s Shaping the Shoes and Retail Apparel Industry&#39;s Future
Cost Headwinds: Companies in the industry are witnessing elevated costs due to factors like commodity cost inflation and reinvestments. Supply-chain constraints and elevated logistic costs have been acting as deterrents. Many companies expect increased logistic costs to hurt margins in the near term. Elevated marketing expenses, higher operating overhead and demand-creating expenses and increased investments to enhance store and digital operations have been raising SG&amp;A costs. Also, industry participants are witnessing rising costs to support brand campaigns and digital investments. The exit from the Russia business due to the Ukraine-Russia conflict is likely to be the key concern for some players. A tough and competitive labor market is another headwind. These factors pose a threat to the industry players&#39; margins. 
Consumer Demand Trends: Players in the industry have been benefiting from strong consumer demand for activewear/athleisure products and footwear. The trend is expected to continue in 2024. Athletic goods and apparel companies offer products from footwear, sweatshirts, leggings, pants, jackets and tops to yoga wear and running clothes for men and women. The increasing focus on fashion is boosting the demand for innovative clothes and footwear in the United States. Industry participants have been focused on product innovations, active promotions, store expansion and enhancing e-commerce capabilities to gain market share. Favorable health and wellness trends have been the key to inspiring footwear manufacturers to expand their product portfolios. The companies continue to innovate styles, materials and colors and incorporate functional designs to grab a large share of the fast-growing market. Multi-functional shoes, which cater to casual and formal looks, have been gaining popularity. 
E-Commerce Investments: E-commerce has been playing a crucial role in the athleisure market&#39;s growth. The companies in the market segment are looking to build a customer base through websites, social media and other digital channels. As consumers continue to shop from home, the growth of athletic-inspired apparel and digital sales are likely to continue. Companies focused on expanding their athletic-based apparel lines and building on e-commerce capabilities are expected to witness growth in the long run. Efforts to accelerate deliveries through investments in supply chains and order fulfillment avenues are likely to provide an edge to industry players. Simultaneously, companies are investing in renovations and improved checkouts, as well as mobile point-of-sale capabilities, to make stores attractive. Efforts to enhance experiences through multiple channels are likely to contribute significantly to improving traffic and transactions in stores and online.
Zacks Industry Rank Indicates Dull Prospects
The Zacks Shoes and Retail Apparel Industry is an 11-stock group within the broader Zacks Consumer Discretionary sector. The industry currently carries a Zacks Industry Rank #164, which places it in the bottom 34% of more than 250 Zacks industries. 
The group&#39;s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull prospects for the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. 
The industry&#39;s positioning in the bottom 50% of the Zacks-ranked industries is the result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are losing confidence in this group&#39;s earnings growth potential. 
Before we present a few stocks that you may want to consider for your portfolio, let&#39;s look at the industry&#39;s recent stock market performance and valuation picture.
Industry vs. Sector
The Zacks Shoes and Retail Apparel industry has underperformed the sector and the S&amp;P 500 in the past year. 
Stocks in the industry have collectively declined 28%. The Zacks Consumer Discretionary sector and the Zacks S&amp;P 500 composite have risen 2.7% and 23.7%, respectively.
<h3>One-Year Price Performance</h3>
<img alt="" src="https://staticx-tuner.zacks.com/images/zadmin_tuner_image/price_20240702.jpg" style="height:385px; width:620px" />
Shoes and Retail Apparel Industry&#39;s Valuation
On the basis of forward 12-month price-to-earnings (P/E), commonly used for valuing Consumer Discretionary stocks, the industry is currently trading at 18.28X compared with the S&amp;P 500&#39;s 21.5X and the sector&#39;s 16.6X. 
Over the last five years, the industry traded as high as 37.75X and as low as 18.28X, with a median of 27.01X, as the chart below shows.
<h3>Price-to-Earnings Ratio (Past 5 Years)</h3>
<img alt="" src="https://staticx-tuner.zacks.com/images/zadmin_tuner_image/pe_20240702.jpg" />
4 Shoes &amp; Retail Apparel Stocks to Watch
Wolverine: Wolverine is engaged in the designing, manufacturing and distribution of a wide variety of casual as well as active apparel and footwear. The company also manufactures children&#39;s footwear and specially designed boots and accessories for industrial purposes. Its focus on brand structure, increasing efficiency by removing costs, strategic review of its portfolio, improving working capital and lowering leverage bode well. Wolverine continues to focus on strengthening its DTC business. Speed-to-market initiatives, deployment of digital product development tools, expansion of e-commerce platforms and frequent introduction of products are steadily contributing to its performance. 
Management looks forward to generating $150 million of annual cost savings for 2024, which is likely to be invested in growth brands. The Zacks Consensus Estimate for WWW&#39;s 2024 earnings is pegged at 80 cents per share, which indicates significant growth from 5 cents reported in the year-ago quarter. The consensus estimate for WWW&#39;s 2024 EPS has been unchanged in the past 30 days. The company has a trailing four-quarter negative earnings surprise of 6.3%, on average. Shares of this Zacks Rank #1 (Strong Buy) company have declined 11.9% in the past year.
<h3>Price and Consensus: WWW</h3>
<img alt="" src="https://staticx-tuner.zacks.com/images/zadmin_tuner_image/www_20240702.jpg" style="height:407px; width:620px" />
Skechers: This Manhattan Beach, CA-based company designs, develops, markets and distributes footwear for men, women and children in the United States and overseas under the SKECHERS name, as well as several unique brand names. The company&#39;s emphasis on new product lines, store remodeling projects, cost-containment efforts, inventory management and global distribution platform bodes well. SKX is focused on executing its long-term growth strategy, with a diverse assortment of innovative and comfortable products. This is expected to drive its top line in the near and long term. 
Skechers is investing strategically to improve infrastructure worldwide, primarily in e-commerce platforms and distribution centers. The company&#39;s international business is a significant sales growth driver. SKX has a trailing four-quarter earnings surprise of 34.1%, on average. The Zacks Consensus Estimate for the footwear company&#39;s 2024 sales and earnings indicates growth of 10.6% and 16.9%, respectively, from the year-ago quarter&#39;s reported figures. The consensus estimate for SKX&#39;s 2024 EPS has moved up by 0.5% in the past 30 days. Shares of this Zacks Rank #2 (Buy) company have rallied 26.3% in the past year.
<h3>Price and Consensus: SKX</h3>
<img alt="" src="https://staticx-tuner.zacks.com/images/zadmin_tuner_image/skx_20240702.jpg" />
Caleres: Caleres is a leading footwear retailer and wholesaler in the United States, China, Canada and Guam. The company operates through Famous Footwear and Brand Portfolio segments. The Saint Louis, MO-based company has been benefiting from positive consumer demand trends and accelerated recovery in the footwear marketplace, aiding its sales. The momentum in the Famous Footwear brand is expected to contribute meaningfully to sales growth. Strong performances of CAL&#39;s emerging brands, including Vionic, Sam Edelman, Allen Edmonds and Blowfish Malibu, are expected to be growth drivers. 
Management anticipates the strong performance of the Famous Footwear brand and gains from the Brand Portfolio segments, leveraging a diversified brand model and the continued execution of strategic priorities to aid CAL&#39;s performance. Caleres&#39; focus on consumers&#39; evolving preferences and efforts to drive growth across its omnichannel ecosystem bode well. The Zacks Consensus Estimate for CAL&#39;s fiscal 2024 sales and earnings indicates growth of 0.7% and 5.3%, respectively, from the year-ago quarter&#39;s reported figures. The consensus estimate for CAL&#39;s fiscal 2024 EPS has been unchanged in the past 30 days. The company has a trailing four-quarter earnings surprise of 4.9%, on average. Shares of this Zacks Rank #2 company have rallied 31.9% in the past year.
<h3>Price and Consensus: CAL</h3>
<img alt="" src="https://staticx-tuner.zacks.com/images/zadmin_tuner_image/cal_20240702.jpg" style="height:398px; width:620px" />
Adidas: The leading manufacturer and seller of athletic and sports lifestyle products in Europe, the Middle East, Africa, North America, Greater China, the Asia Pacific and Latin America is poised to gain from strong demand, compelling products and robust performance of its online business. Adidas has been benefiting from improved sell-through of all Adidas products in the market. Moreover, the company has been witnessing improved margins, driven by the recently implemented price increases and an improved channel mix. 
The Zacks Consensus Estimate for ADDYY&#39;s 2024 sales indicates growth of 5.1% from the year-ago quarter&#39;s reported figure. The consensus estimate for ADDYY&#39;s 2024 earnings is pegged at $1.68, whereas it reported a loss of 36 cents in the year-ago quarter. Adidas delivered an earnings surprise of 70.5%, on average, in the trailing four quarters. This Zacks Rank #3 (Hold) stock has rallied 22.1% in the past year.
<h3>Price and Consensus: ADDYY</h3>
<img alt="" src="https://staticx-tuner.zacks.com/images/zadmin_tuner_image/addyy_20240702.jpg" />
<a href="https://www.zacks.com/commentary/2296020/4-steady-shoes-retail-apparel-stocks-in-a-troubled-industry?cid=CS-BENZ-FT-industry_outlook-2296020">To read this article on Zacks.com click here.</a>

Small Cap

4 Steady Shoes & Retail Apparel Stocks in a Troubled Industry

On Thursday, Nike (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nke#NYSE">NKE</a>) reported its fourth quarter earnings,&nbsp;shares plunging more than 12% in after hours trading. Sponsoring nine national teams at the UEFA&nbsp;Euro 2024 football tournament,&nbsp;Nike is&nbsp;the top sponsor of jerseys in that arena,&nbsp;beating out&nbsp;its rivals&nbsp;like&nbsp;Adidas&nbsp;AG (OTC: <a class="ticker" href="https://www.benzinga.com/stock/addyy#OTC">ADDYY</a>), but the overall vibe is that Nike just hasn&rsquo;t innovated enough with its products not being accompanied by the quality storytelling it built its success upon.&nbsp;The world&rsquo;s largest sportswear maker&nbsp;by sales lowered its full year sales outlook,&nbsp;rattling&nbsp;the stocks of Foot Locker (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fl#NYSE">FL</a>) and&nbsp;Dick&#39;s Sporting Goods (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dks#NYSE">DKS</a>), as it seems even the upcoming Olympics Games won&#39;t be able to help it get out of its sales slump.
<h3>Nike Is Going Back To Embracing Wholesalers</h3>
Nike&rsquo;s&nbsp;strategy to&nbsp;drift away from wholesalers like Foot Locker and Dick Sporting Goods to&nbsp;sell its products through its&nbsp;direct channels of&nbsp;owned&nbsp;stores and website&nbsp;has&nbsp;hurt&nbsp;its&nbsp;sales,&nbsp;so the athleisure wear giant is trying to restore those relations.&nbsp;Its&nbsp;key retail partners,&nbsp;including&nbsp;Foot Locker&nbsp;and Dick&#39;s Sporting Goods have&nbsp;been openly optimistic about Nike&rsquo;s upcoming product launches and new innovations. Foot Locker noted that Nike is clearly back to playing&nbsp;offense.&nbsp;
<h3>Fiscal Fourth Quarter Highlights</h3>
For the quarter that ended on May 31st, Nike reported revenue&nbsp;decreased by&nbsp;2%&nbsp;to&nbsp;$12.61 billion.&nbsp;
Its&nbsp;direct-to-consumer sales&nbsp;were&nbsp;8%&nbsp;down a YoY basis as they amounted to&nbsp;$5.1 billion, while&nbsp;wholesale revenues&nbsp;went up&nbsp;5%&nbsp;as they amounted to&nbsp;$7.1 billion.&nbsp;The world&#39;s largest sportswear company also&nbsp;revealed it is struggling with&nbsp;weakening demand in international markets, including in China.
On a slightly better note,&nbsp;gross margins increased to 44.7% from last year&rsquo;s comparable quarter when it amounted to&nbsp;43.6%.
<h3>A Lowered 2025 Fiscal Year Outlook</h3>
Nike projected a larger than expected sales decline after initially guiding for&nbsp;overall sales growth in 2025 that kicked off on June 1st&nbsp;and is deemed to be a transition year for its business, as phrased by the&nbsp;CEO John Donahoe&nbsp;. In fiscal 2025, Nike excepts&nbsp;revenue to go down by&nbsp;mid-single digits, including&nbsp;first quarter&rsquo;s expected&nbsp;10% drop.
<h3>The World&rsquo;s Most Successful Sports Brand Story Needs To Regain Its Mojo</h3>
Throughout its fiscal 2024, Nike&nbsp;has been trying to&nbsp;restore its&nbsp;sales growth&nbsp;mojo but aweaker than expected quarter wrapped up a lackluster year. Nike is taking aggressive action to reorganize its inventory, hoping&nbsp;the Olympics will also help getting out of its sales slump, along with&nbsp;new products&nbsp;that are expected to boost financials by the end of the year, with&nbsp;meaningful&nbsp;andsequential improvemenst in the second&nbsp;of the year. What Nike never lacked is self-confidence, but the latest reported quarter undoubtedly highlighted the many challenges that gaslighting its well-known spirit.&nbsp;
DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

Nike's Fourth Quarter Results Highlight Its Struggle With Ongoing Challenges

Adidas AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ADDYY#OTC">ADDYY</a>) has recently experienced significant internal turmoil. Two of its employees in China departed amid an ongoing corruption investigation within the company.
The inquiry began after Adidas received an anonymous letter on June 7 alleging misconduct and compliance violations by certain staff members in its China operations.
The probe quickly identified one employee who breached the company's conduct code in dealings with local vendors, according to <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-06-26/adidas-says-two-china-employees-have-left-company-amid-probe?srnd=homepage-Europe&amp;sref=TBDibEcD" rel="noreferrer noopener">Bloomberg</a>. This led to their departure.
Another employee was found to have fallen short of Adidas's leadership standards, particularly in fostering mutual respect and trust among colleagues.
This finding resulted in the second dismissal as the company continues to uphold its internal ethical standards.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/05/39045408/nike-wins-partial-victory-in-three-stripe-trademark-battle-with-adidas" rel="noreferrer noopener">Nike Wins Partial Victory in Three-Stripe Trademark Battle with Adidas</a>
The scandal garnered public attention when screenshots of the incriminating letter circulated across social media and news websites in China.
The letter accused Adidas employees of accepting kickbacks from external service providers, with one senior manager allegedly receiving substantial bribes from suppliers, <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39351734/adidas-faces-bribery-allegations-in-china-launches-investigation-report" rel="noreferrer noopener">including cash and real estate</a>.
The brand faced significant setbacks from 2019 to 2022 due to stringent lockdown measures and a consumer boycott stemming from the brand's stance on sourcing materials from Xinjiang amid accusations of forced labor practices in the region.
Adidas increased its full-year revenue guidance and sees currency-neutral revenues increasing at a mid- to high-single-digit rate in 2024, up from the <a target="_blank" href="https://www.benzinga.com/news/earnings/24/04/38287020/adidas-boosts-outlook-on-strong-q1-results-details" rel="noreferrer noopener">previous mid-single-digit rate growth</a>.
Price Action: ADDYY shares are trading higher by 1.62% at $118.76 at last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock

Emerging Markets

Adidas Bribery Allegations Lead To Staff Exits In China

Xponential Fitness, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPOF#NYSE">XPOF</a>) shares are trading higher after the company announced the appointment of Mark King as <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/b39355295/xponential-fitness-announces-appointment-of-mark-king-as-chief-executive-officer" rel="noreferrer noopener">Chief Executive Officer, effective June 17, 2024</a>.
King will also serve on the company&#8217;s Board of Directors. King succeeds Brenda Morris, who has been serving as Interim CEO. Morris will continue her role as a board member following the transition.
King brings a wealth of experience in leading global consumer brands and franchise operations. Under his leadership at Taco Bell, he drove significant growth and expansion, overseeing the addition of over 1,400 franchise locations and achieving consistent sales increases.
His previous roles include President of Adidas AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ADDYY#OTC">ADDYY</a>) North America and CEO of TaylorMade, where he substantially increased market share and sales.
Xponential Fitness stock has lost over 46% in the last 12 months. Investors can gain exposure to the stock via IShares Russell 2000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWO#NYSE">IWO</a>) and Vanguard U.S. Value Factor ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/VFVA#BATS">VFVA</a>).
Price Action: XPOF shares are trading higher by 26.5% at $14.26 at last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

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XPOF

Why Xponential Fitness Shares Are Surging On Monday

Adidas AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ADDYY#OTC">ADDYY</a>) has reportedly initiated an internal probe into serious bribery allegations in its China operations following a whistleblower&#8217;s claims, which detailed misconduct involving high-ranking officials <a target="_blank" href="https://www.benzinga.com/quote/ADDYY/analyst-ratings" rel="noreferrer noopener">within the company</a>.
The accusations came to light through a whistleblower letter reportedly penned by Adidas China employees, which surfaced this June on Xiaohongshu, a popular Chinese social media platform, reported <a target="_blank" href="https://www.ft.com/content/d24727d9-83ea-4c4f-bd0d-fdbb7b635d72" rel="noreferrer noopener">Financial Times</a>.
This letter accuses certain Adidas personnel, including a high-level marketing manager, of embezzling substantial sums from the sportswear giant&#8217;s significant annual marketing budget of €250 million, the report added.
The document details illicit financial dealings, including kickbacks from external service providers and huge bribes in the form of cash and assets like real estate received by another senior manager.
Despite the severe allegations, no accused Adidas staff members have been suspended as the investigation continues.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/earnings/24/04/38287020/adidas-boosts-outlook-on-strong-q1-results-details" rel="noreferrer noopener">Adidas Boosts Outlook On Strong Q1 Results: Details</a>
Amid these controversies, Adidas reiterated its commitment to stringent compliance with both legal standards and internal ethical policies across all operational regions.
The company has engaged external legal counsel to rigorously pursue the truth behind these claims.
The inquiry emerges during a turbulent period for Adidas in China, a market that once stood as its most rapidly expanding and profitable sector.
The brand faced significant setbacks from 2019 to 2022 due to stringent lockdown measures and a consumer boycott stemming from the brand&#8217;s stance on sourcing materials from Xinjiang, amid accusations of forced labor practices in the region.
In response to these challenges, Adidas appointed a new CEO for its China operations in 2022, Adrian Siu, previously of Cosmo Lady.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/news/24/05/39045408/nike-wins-partial-victory-in-three-stripe-trademark-battle-with-adidas" target="_blank" rel="noreferrer noopener">Nike Wins Partial Victory in Three-Stripe Trademark Battle with Adidas</a>
Image by chinnian on Flickr

Adidas Faces Bribery Allegations In China, Launches Investigation: Report

On Wednesday, Lululemon Athletica Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lulu#NASDAQ">LULU</a>) surpassed&nbsp;Wall Street&rsquo;s earnings and revenue estimates with its first fiscal quarter results. However, the Nike NYSE: NKE) and Adidas AG (OTC: <a class="ticker" href="https://www.benzinga.com/stock/addyy#OTC">ADDYY</a>) rival also issued a weak second quarter outlook as it faces a slowdown at its largest market, the Americas, where it reported flat comparable sales. But, Lululemon stock still jumped 10% upon the report during extended trading on Wednesday.
<h3>Fiscal First Quarter Highlights</h3>
For the quarter ended on April 28th, Lululemon reported sales grew about 10% to&nbsp;$2.21 billion,&nbsp;surpassing LSEG&rsquo;s estimate of&nbsp;$2.19 billion.
the athletic apparel retailer&nbsp;reported a net income of&nbsp;$321 million, or $2.54 per share, also surpassing LSEG&rsquo;s estimate of&nbsp;$2.38&nbsp;per share. Not having the right sizes and colors in its stores&nbsp;hit Lululemon&rsquo;s sales for the second consecutive quarter.&nbsp;The color assortment was too narrow in leggings&nbsp;and there wasn&rsquo;t enough stock of&nbsp;sizes its customers wanted, but management expects to sort out these issues during the second half of the year.&nbsp;&nbsp;Sales in the Americas&nbsp;rose&nbsp;3%, which is quite a deceleration compared to last year&rsquo;s comparable quarter when they grew 17%.&nbsp;
While comparable sales in America remained flat, overall, they grew 6%, which was still below StreetAccount&rsquo;s 7% estimate.
<h3>Fiscal Second Quarter Outlook</h3>
For the current quarter, Lululemon guided for&nbsp;revenue&nbsp;between&nbsp;$2.40 billion and $2.42 billion,&nbsp;coming short of LSEG&rsquo;s&nbsp;$2.45 billion estimate.&nbsp;As for&nbsp;earnings per share, Lululemon&rsquo;s outlook is in the range from&nbsp;$2.92&nbsp;to&nbsp;$2.97,&nbsp;also below LSEG&rsquo;s estimate of&nbsp;$3.02.
Full year outlook shows Lululemon expects a more favorable remainder of the year.
As for&nbsp;2024, Lululemon&nbsp;guided for&nbsp;earnings per share between $14.27 and $14.47,&nbsp;surpassing LSEG&rsquo;s consensus estimate of&nbsp;$14.11. It guided for&nbsp;revenue between $10.7 billion and $10.8 billion,&nbsp;which is in line with LSEG&rsquo;s estimate.
Lululemon could be going through a rougher patch than it is willing to admit.
Although admitting that work needs to be done for the Americas region whose growth has slowed down,&nbsp;CEO Calvin McDonald touted the &ldquo;strong momentum&rdquo;&nbsp;Lululemon is seeing at its international markets. But as of Wednesday&rsquo;s close, Lululemon&rsquo;s stock is 40% down year to date, with investors growing increasingly concerned about its growth, with the news of its longtime Chief Product Officer Sun Choe&nbsp;resigning also adding to their worries as Choe was known for brining constant innovation to the brand&rsquo;s value proposition. Lululemon has&nbsp;changed the way millions of people dress, with even&nbsp;Nike&nbsp;rolling out&nbsp;copycat offerings, but as it expands beyond yoga, its main market is slowing down.&nbsp;It does count on higher-income shoppers&nbsp;for support in navigating&nbsp;various economic conditions, but even the mighty Nike is undergoing a cost-cutting strategy amid these challenging times. On June 4th, Bloomberg reported Nike layoffs even reached its headquarters in the Netherlands. Both Nike and Adidas are hoping that this summer&rsquo;s Paris 2024 Olympics will boost sales and help them rebound. Lululemon received positive reviews&nbsp;Canada&rsquo;s official Olympic kit it designed, but it will need to do something much more awesome to turn its fortunes around in the Americas.&nbsp;
DISCLAIMER:&nbsp;This content is for informational purposes only. It is not intended as investing advice.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

Lululemon Needs To Turn Its Fortune Around In The Americas

It was the year 2013 and Santiago, Chile&rsquo;s capital, was unknowingly about to become the epicenter of a digital phenomenon that would redefine the perception of <a href="http://www.benzinga.com/cannabis">cannabis</a> in the Spanish-speaking world. Sim&oacute;n, Pascual and Joaqu&iacute;n Espinosa, three brothers with unparalleled vision and connection, breathed life into <a href="https://elplanteo.com/porros-viajes-y-buen-contenido-conoce-a-en-vola-la-plataforma-cannabica-chilena/">En Vol&aacute;</a>, a project that started as an exchange of humor-filled messages and deep reflections under the influence of marijuana.
This exchange, initially private, found its way into the public domain thanks to a friend who saw potential in their conversations. &quot;I really like this story,&quot; Sim&oacute;n recalls, &quot;it happened in 2013... One day, a good friend accidentally read our conversations and... emphatically told us that we should publish them.&quot;
<img alt="The Espinosa Brothers" src="https://imageio.forbes.com/specials-images/imageserve/65c64fb8468e1fe1cf199f8e/The-Espinosa-Brothers/960x0.jpg?format=jpg&amp;width=1440" style="height:468px; width:624px" />
The Espinosa Brothers. COURTESY OF EN VOL&Aacute;
As En Vol&aacute; began to take shape, the country&#39;s cannabis market was in a promising growth phase. While nascent at the time, it&#39;s&nbsp;<a href="https://www.statista.com/outlook/hmo/cannabis/chile" rel="nofollow noopener noreferrer" target="_blank" title="https://www.statista.com/outlook/hmo/cannabis/chile">estimated</a>&nbsp;that cannabis market revenues in <a href="https://elplanteo.com/noticias/latinoamerica/chile/">Chile</a> reached $175.7 million in 2023, with an expected annual growth rate of 16.76% until 2028. This economic potential reflects not just the growing acceptance and regulation of cannabis in Chile but also in many other countries in Latin America and Spain, where the market size is even bigger. Countries like Argentina, Uruguay and Colombia have already regulated <a href="https://elplanteo.com/que-es-la-marihuana/">cannabis</a> for either medical or adult use, with sales already in the hundreds of millions of dollars per year.
In this context of expansion and change, En Vol&aacute; positioned itself not just as a pioneer in digital cannabis content in Spanish but also as a key player in the emerging cannabis industry, connecting with an increasingly wide and diverse audience seeking information, education and cannabis-related products.
The creation of En Vol&aacute; wasn&#39;t just about launching a website; it was the beginning of a cultural dialogue that would address cannabis topics from a perspective never before seen in the region. With a focus on user-generated content at first, the project quickly evolved into a cannabis content platform that has now accumulated nearly 62 million views on YouTube alone. This compares to Cannacribs&rsquo; 31 million views, House of Weed&rsquo;s 49 million and Forbes&rsquo; 200 million; not too shabby, right?
&quot;A community quickly began to grow around this portal,&quot; Sim&oacute;n notes, highlighting the rapid acceptance and explosive growth of En Vol&aacute;. All one needs to do is walk the streets of Santiago de Chile with Sim&oacute;n to realize how beloved the platform and its team members are: not one hour will pass without Sim&oacute;n being stopped by a random person asking for a selfie or looking to deliver a gift.
What started as a modest Tumblr blog transformed into an authoritative voice in cannabis culture, both nationally and internationally. The company&rsquo;s strategy, deeply rooted in listening to its community, allowed the Espinosa brothers and their team to capture the needs and curiosities of their audience. This closeness with followers became the engine of their growth: &quot;The base of our strategy is quite simple: we listen to our community, or read them, actually,&quot; Sim&oacute;n says.
<h3>Humor And The Mainstreaming Of Cannabis</h3>
<img alt="Simón &amp; Crocs" src="https://imageio.forbes.com/specials-images/imageserve/65c650a3fd41faec7626833d/Sim-n---Crocs/960x0.jpg?format=jpg&amp;width=1440" style="height:834px; width:624px" />
Sim&oacute;n wearing Crocs. COURTESY OF EN VOL&Aacute;
The leap from a blog to becoming a phenomenon on digital platforms like YouTube and Instagram not only demonstrates the team&#39;s ability to adapt and evolve but also its commitment to creating content that educates, entertains and connects the global cannabis community, all at the same time. Authenticity and genuine interest in cannabis have been key to attracting meaningful collaborations, including renowned brands like Adidas and Crocs, which no longer see weed as a niche or fringe topic, but rather as another customer demographic to tap into through colorful winks to its culture. &quot;That genuine interest is what makes our content organic,&quot; explains Sim&oacute;n, underlining how a passion for the subject has allowed En Vol&aacute; to transcend the cannabis niche and capture the attention of a broader audience.
Beyond content, this is a story of innovation and entrepreneurship. Sim&oacute;n&rsquo;s curiosity and entrepreneurial spirit led him to venture into the business of importing and distributing cannabis paraphernalia, addressing the lack of quality options in the local market. &quot;I began to research and realized that other people, in other parts of the world, had the same concern,&quot; he recalls. This entrepreneurial venture not only complemented the platform&rsquo;s content but also reinforced its position as a leader in cannabis culture, showing that its commitment went beyond words and translated into concrete actions to improve the cannabis consumer experience.
As En Vol&aacute; solidified its digital presence, its focus expanded beyond entertainment to embrace a deeper mission: to educate and change the public perception of cannabis. This evolution reflects a commitment to empowerment through information, responding to a palpable need for knowledge in a society marked by decades of stigmatization and misinformation about cannabis. &quot;We realized that the lack of information was absolute,&quot; comments Sim&oacute;n, emphasizing the importance of education in building an informed and conscious community.
In this context, the venture morphed into an educational resource, using humor and creativity as tools to make information about cannabis accessible and easily digestible. It was not a lecture or a TED Talk, it was now edutainment.
The strategy of combining entertainment with education proved to be a resounding success, allowing the team&#39;s message to reach a wide and diverse audience &quot;by delivering our message to many people who probably wouldn&#39;t have been willing to listen if they hadn&#39;t been laughing while watching our videos.&quot;
The collaboration with recognized brands, including Adidas, marked a milestone in En Vol&aacute;&#39;s trajectory, evidencing the cultural shift around cannabis and its growing acceptance in the mainstream. These collaborations, far from diluting the platform&rsquo;s essence, reinforced its identity and mission to destigmatize cannabis. &quot;We have never felt that cannabis is a niche; quite the contrary, cannabis is mainstream,&quot; asserts Sim&oacute;n.
As the team navigated the complex legal and social challenges inherent to the cannabis space, it remained steadfast in its commitment to education and legality. The strategy to overcome these obstacles consisted in delving into the knowledge of legislation and civil rights. &quot;The most important thing has been to educate oneself and strictly advise on our drug law, our institutions, media law and civil rights,&quot; notes Sim&oacute;n, demonstrating the importance of playing by the rules, even when seeking to change the game.
<h3>Global Ambitions</h3>
The upward trajectory of En Vol&aacute; has been marked not only by its cultural impact and innovative content approach but also by its strategic vision toward expansion and diversification. Looking to the future, Sim&oacute;n envisions a plethora of opportunities, not just in terms of audience growth but also in exploring new markets and diversifying its content offering. &quot;We will continue to nurture that relationship [with our audience] and grow with new content in more and more Spanish-speaking countries,&quot; affirms Sim&oacute;n.
<img alt="Pascual Espinosa" src="https://imageio.forbes.com/specials-images/imageserve/65c650d57d754f9808dde0d3/Pascual-Espinosa/960x0.jpg?format=jpg&amp;width=1440" style="height:416px; width:624px" />
Pascual Espinosa. COURTESY OF EN VOL&Aacute;
This international focus is not a distant aspiration but a reality in the making. En Vol&aacute;&#39;s resonance has already crossed Chile&#39;s borders, finding echo in Latin American countries, Spain and areas where Hispanics have significant cultural and economic influence, like Florida and California, a reach that stands as a testament to the platform&rsquo;s ability to adapt and resonate in different cultures, demonstrating the universality of its message and the relevance of cannabis as a subject of global interest.
But En Vol&aacute;&#39;s influence extends beyond content creation, positioning itself as a vital bridge between consumers and the cannabis industry. The platform has emerged as an invaluable resource, offering a unique mix of educational, informative and entertaining content. This unique position in the market has not only consolidated the business&rsquo; initial success but also broadened its impact. &quot;We have helped foreign companies enter our market and also numerous local companies enter markets in the Northern Hemisphere,&quot; Sim&oacute;n comments.
Adaptability and foresight have been crucial to En Vol&aacute;&#39;s continued success amid the challenges of the digital content industry. &quot;Being on all platforms is very wise, understanding that, any day, a social network could shut us down,&quot; mentions Sim&oacute;n, bringing up the constant closures that cannabis-related pages grapple with on social media platforms, especially on Instagram and TikTok &ndash; a topic we&rsquo;ll explore in detail in an upcoming story. This strategy has allowed En Vol&aacute; to remain relevant and appealing to its audience, even in a constantly evolving and hard-to-navigate digital landscape.
<h2>&#39;Trust Your Instinct&#39;</h2>
En Vol&aacute;&#39;s commitment to its original roots and values remains a fundamental pillar of its long-term strategy, Sim&oacute;n argues. The deep connection with its origin and community is key to establishing a lasting legacy. En Vol&aacute; inspires and empowers, fostering an environment of learning and collective growth. &quot;Our editorial line has always been clear: creativity, humor, and education,&quot; he states.
The legacy of En Vol&aacute;, palpable in every viewed video, recommended product and challenged stigma, is a story of how passion, creativity and genuine commitment can transform a cultural space. The Espinosa Brothers and their team have navigated the complex cannabis landscape with a mix of boldness and wisdom, proving that it&#39;s possible to be a positive agent of change in an industry surrounded by controversy. What&rsquo;s more, this story is a testament to the power of conscious communication and digital activism.
Looking to the future, Sim&oacute;n does not see En Vol&aacute; simply as a content platform but as a key agent helping drive the transformation of the perception and understanding of cannabis globally. &quot;Our vision is to be a reference not just in content, but also in the way society perceives and understands cannabis,&quot; he emphasizes. This ambition reflects a commitment not just to the growth of the platform but to the broader social and cultural impact of its work.
<img alt="Simón Espinosa gets high" src="https://imageio.forbes.com/specials-images/imageserve/65c650ec7d754f9808dde0d5/Sim-n-Espinosa-gets-high/960x0.jpg?format=jpg&amp;width=1440" style="height:624px; width:624px" />
Sim&oacute;n Espinosa gets high. COURTESY OF EN VOL&Aacute;
The true legacy of En Vol&aacute;, however, transcends follower numbers or brand collaborations. It lies in the personal stories of change, in conversations between parents and children, in the relief of those who found a medicinal solution in cannabis and in the entrepreneurs inspired by its example. &quot;It&#39;s been very exciting, hearing the stories of thousands of children who repeat &#39;Thanks to you, I was able to explain to my parents why I smoke,&#39; and thousands of parents who answer &#39;Thanks to you, I was able to talk about the topic with my children&#39;,&quot; shares Sim&oacute;n, highlighting the emotional and personal impact of En Vol&aacute; on its community.
In a world where digital content is ephemeral and attention is fleeting, En Vol&aacute; has managed to create something enduring: an informed, empowered and connected community. Constant adaptation to the digital content industry has been crucial, allowing the platform to not just survive but thrive. &quot;The digital content and entertainment industry is very dynamic... change is permanent and desirable,&quot; reflects Sim&oacute;n. This proactive approach to innovation and adaptability has been key to its continuous growth and relevance.
Finally, Sim&oacute;n&#39;s advice to other content creators looking to delve into niche topics like cannabis resonates with a call to authenticity and passion: &quot;Always trust your instinct and, if you are able to identify your passion in this world, chase it.&quot; These worlds encapsulate the essence of what has made En Vol&aacute; a phenomenon: an unbreakable passion for the subject, a commitment to authenticity and an unwavering dedication to education and empowering its audience.
En Vol&aacute; positions itself not just as a media outlet but as a catalyst for cultural and social change in the perception and understanding of cannabis. As the world moves towards greater acceptance and recognition of cannabis, the platform&rsquo;s contribution to this shift cannot be underestimated. Its story is an inspiration for future generations and a shining example of how to tackle complex topics with humor, honesty and an indefatigable creative spirit.
Follow me on&nbsp;<a href="https://www.twitter.com/javierhasse" rel="nofollow noopener noreferrer" target="_blank">Twitter</a>&nbsp;or&nbsp;<a href="https://www.linkedin.com/in/javierhasse/" rel="nofollow noopener noreferrer" target="_blank">LinkedIn</a>.&nbsp;Check out&nbsp;my&nbsp;<a href="https://elplanteo.com/" rel="nofollow noopener noreferrer" target="_blank">website</a>&nbsp;or&nbsp;some of my other work&nbsp;<a href="https://benzinga.com/cannabis" rel="nofollow noopener noreferrer" target="_blank">here</a>.&nbsp;
This article was originally published on <a href="https://www.forbes.com/sites/javierhasse/2024/02/09/how-3-chilean-brothers-built-one-of-the-biggest-cannabis-content-platforms-on-earth-attracting-sponsors-like-adidas-and-crocs/?sh=466147255a20">Forbes</a> and appears here with permission. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

Cannabis

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Entrepreneurship

How 3 Chilean Brothers Built A Global Cannabis Platform Embraced By Big Sponsors Like Adidas And Crocs

Nike Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) has&nbsp;been given&nbsp;the green light to feature three stripes on some of its trouser designs in Germany following a court ruling.
The ruling marks a significant moment in the ongoing legal battle between the U.S. sportswear giant and its German competitor,&nbsp;Adidas AG&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/ADDYY#OTC">ADDYY</a>).
The Duesseldorf regional court had previously barred&nbsp;Nike&nbsp;from using two or three stripes on five of its trouser designs after&nbsp;Adidas&nbsp;filed a trademark infringement lawsuit in 2022, according to a report from Reuters.
However, the court partially overturned its earlier decision in a second appeal hearing.
Nike is now permitted to use the stripes on four of the five disputed models, with the restriction remaining for one model, according to the court&#8217;s statement.
This ruling adjusts the initial verdict, which had favored Adidas entirely. Adidas is known for vigorously defending its iconic three-stripe trademark globally.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/38837401/nikes-converse-brand-slashes-jobs-as-part-of-cost-cutting-move-report" rel="noreferrer noopener">Nike&#8217;s Converse Brand Slashes Jobs As Part Of Cost-Cutting Move: Report</a>
Despite this, the German brand&nbsp;chose to withdraw&nbsp;its legal challenge against the Black Lives Matter organization&#8217;s use of a yellow three-stripe logo last year, fearing that the objection might&nbsp;be interpreted&nbsp;as a stance against the anti-racism movement.
Nike has argued that Adidas&#8217; claims on the three-stripe design are overly restrictive. The company maintains that striped decorations do not necessarily denote a specific brand, challenging the breadth of Adidas&#8217; trademark protections.
Nike stock has lost more than 13% in the last 12 months. Investors can gain exposure to the stock via&nbsp;the Consumer Discretionary Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) and&nbsp;Monarch Blue Chips Core Index ETF&nbsp;(BATS:<a class="ticker" href="https://www.benzinga.com/stock/MBCC#BATS">MBCC</a>).
Price Action: NKE shares were trading higher by 0.20% at&nbsp;$91.93 at the last check on Tuesday.
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/news/earnings/24/04/38511886/adidas-puts-yeezy-history-behind-rides-fashion-high-with-samba-and-gazelle-shoes" target="_blank" rel="noreferrer noopener">Adidas Puts Yeezy History Behind, Rides Fashion High With Samba And Gazelle Shoes</a>
Photo via Shutterstock

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Nike Wins Partial Victory in Three-Stripe Trademark Battle with Adidas

Soccer superstar Lionel Messi is one of the most well-known sports figures around the world and can have an influence on the growth of soccer teams, soccer leagues and companies <a href="https://www.benzinga.com/news/23/08/33737512/lionel-messis-inter-miami-stint-leads-to-explosive-surge-in-mls-streaming-subscribers-double">broadcasting the games.</a>
A key piece of Messi memorabilia recently sold for almost $1 million. Here's the story.
What Happened: Years before he<a href="https://www.benzinga.com/news/23/06/32764885/lionel-messi-joins-mls-in-surprise-move-heres-how-apple-could-have-played-into-decision-to-join-davi"> made his debut </a>in Major League Soccer for Inter Miami, Messi was a teenager looking to sign with Barcelona, one of the world's top soccer teams.
The napkin that helped secure the deal is now the most valuable napkin in the world after selling for $964,450 at auction, as reported by <a href="https://www.cllct.com/sports-collectibles/memorabilia/the-napkin-which-brought-messi-to-barcelona-sells-for-964-450">Cllct</a>. Although the napkin doesn't contain Messi's signature, which makes the high sale price potentially surprising.
"The napkin altered the course of sports history forever in December 2000, when haphazard scribbles paved the way for Lionel Messi to sign with FC Barcelona, where he became arguably the greatest player in the history of soccer," Cllct's Will Stern wrote.
A 13-year-old at the time, Messi was hoping to land a deal with Barcelona with his father Jorge negotiating with the team. When the team seemed to not want to commit, Messi's father threatened to take Messi back to Argentina to explore options to play elsewhere.
Not wanting to lose out on landing the future soccer star who had shown success at a young age, Barcelona's director of football Carles Rexach drew up a contract on a napkin to show the commitment to landing Messi.
"In Barcelona, on 14 December 2000 and in the presence of Messrs Minguella and Horacio, Carles Rexach, FC Barcelona's sporting director, hereby agrees, under his responsibility and regardless of any dissenting opinions, to sign the player Lionel Messi, provided that we keep to the amounts agreed upon," the napkin contract reads.
The signatures on the napkin include Rexach, Argentine agent Horacio Gaggioli and advisor Josep Minguella.
"My lawyers looked at it. The napkin had everything: my name, his name, the date. It's notarized. It was a legal document," Rexach said previously.
Gaggioli took the napkin home and kept it in a bank vault for over 20 years. The napkin, which was sold by <a href="https://www.bonhams.com/auction/30164/lot/1/the-napkin-agreement-that-brought-lionel-messi-to-barcelona-manuscript-document-signed-carles-rexach-josep-minguella-and-horacio-gaggioli-in-spanish-on-a-standard-spanish-napkin-committing-fc-barcelona-to-sign-13-year-old-lionel-messi/">Bonham's </a>saw a legal challenge over ownership prior to the sale, which was resolved ahead of the auction.
"Yes, it's a paper napkin, but it's the famous napkin that was at the inception of Lionel Messi's career. It changed the life of Messi, the future of FC Barcelona and was instrumental in giving some of the most glorious moments of football to billions of fans around the globe," Bonham's Ian Ehling said, as shared by Cllct.
Related Link: <a href="https://www.benzinga.com/news/23/08/33602864/want-to-invest-in-lionel-messis-mls-success-theres-a-new-way-to-get-a-stake-in-inter-miami">Want To Invest In Lionel Messi&#8217;s MLS Success? There&#8217;s A New Way To Get A Stake In Inter Miami</a>
Why It's Important: The napkin had a bid of $275,000 around 30 minutes before the auction was set to end. Last-minute bids pushed the final price to $964,450, which came in ahead of a pre-auction estimate of $630,000.
The record for a memorabilia item of Messi's is a set of six game-worn Argentina jerseys worn by Messi in the 2022 World Cup. The jersey lot sold for $7.8 million in December 2023 at a Sotheby's auction. The most expensive Messi sports card ever sold is a 2014 Panini Prizm World Cup Gold numbered out of 10 and graded PSA 10, which sold for $522,000 in April 2022.
While the napkin doesn't have Messi's signature on it, the memorabilia piece could be one of the most important in the soccer star's career and one of the most important pieces in soccer in the last several decades.
Messi played 519 games for Barcelona, scoring 474 goals across 17 seasons. Messi would go on to play for Paris Saint Germain in France and currently plays for Inter Miami in the U.S.
The influence of Messi stretches far and wide today, with Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) enjoying a huge boost to AppleTV+ subscribers for its MLS packages after the soccer star signed with the league.
Adidas (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ADDYY#OTC">ADDYY</a>) inked Messi to a lifetime deal in 2017 luring him away from rival Nike. Adidas helped bring Messi to the MLS, where it is partnered with the league since 1996.
Beer company Anheuser-Busch InBev (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BUD#NYSE">BUD</a>) is hoping for a boost from using Messi in branding and commercials to promote the Michelob Ultra brand. The beer will be an official partner of the upcoming Copa America 2024, which will feature Messi's Argentina.
Read Next: <a href="https://www.benzinga.com/general/sports/23/12/36166611/lionel-messi-to-the-rescue-could-soccer-superstar-help-beer-company-move-past-boycott-and-backlash">Lionel Messi To The Rescue: Could Soccer Superstar Help Beer Company Move Past Boycott And Backlash?</a>
Photo: Shutterstock

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Napkin Sells For $1M, Here's How Lionel Messi Was Involved

Adidas AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ADDYY#OTC">ADDYY</a>) has seen a surge in sales thanks to its Samba and Gazelle shoes, despite a decline in North American sales.
What Happened: Adidas&#8217; first-quarter sales in Europe and China have contributed to a 14% and 8% increase respectively, while North America, its second-largest market, experienced a 4% decrease, Reuters reported. 
The company&#8217;s sales have been driven by the popularity of its &#8220;terrace&#8221; shoes, including the Samba and Gazelle, following a challenging period after the termination of its lucrative Yeezy shoe line.
Adidas&#8217; CEO, Bjorn Gulden, attributed the strong first-quarter sales to the lifestyle business, with demand for terrace shoes continuing to grow. Footwear revenues increased by 13% over the quarter, despite a 1% drop in Adidas&#8217; shares during early trading.
See Also: <a href="https://www.benzinga.com/news/24/04/38424795/amazon-pauses-green-card-sponsorship-for-foreign-workers-in-2024-amid-layoffs-report?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Amazon Pauses Green Card Sponsorship For Foreign Workers In 2024 Amid Layoffs: Report (UPDATED)</a>
Adidas has capitalized on the weakening of its main U.S. competitor, Nike Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>), which has lost market share and warned of a sales decline. On the sneakerhead marketplace, The Edit LDN, sales of Nike shoes have decreased by approximately 30%, while Adidas shoes, typically lower priced, have surged by 80% from the previous year.
&#8220;It is reassuring to see the broad geographic spread of the sales performance, with the U.S. weak as expected but a much stronger Europe,&#8221; said Adam Cochrane, analyst at Deutsche Bank.
Why It Matters: This surge in Adidas&#8217; sales comes after a challenging period. The company reported a loss in 2023 after ending its Yeezy shoe line, which had been highly profitable. However, the recent sales boost from its terrace shoes has been a significant turnaround for the company.
Adidas&#8217; Q1 results come on the heels of a <a href="https://www.benzinga.com/news/earnings/24/04/38287020/adidas-boosts-outlook-on-strong-q1-results-details">strong start to the year</a>, with an 8% increase in currency-neutral revenues and a 4% growth in euro terms. The company&#8217;s gross margin also improved by 6.4% points to 51.2% during the quarter, compared to 44.8% the previous year.
Despite the challenges, Adidas has been optimistic about its future, <a href="https://www.benzinga.com/news/earnings/24/03/37651392/adidas-kicks-off-2024-with-optimism-targets-growth-amid-inventory-and-currency-challenges">targeting growth</a> amid inventory and currency challenges at the start of 2024. The recent surge in sales, particularly in Europe and China, suggests that the company&#8217;s strategies are indeed paying off.
Read Next: <a href="https://www.benzinga.com/news/24/04/38490818/if-you-invested-1000-in-chipotle-mexican-grill-a-decade-ago-this-is-how-much-itd-be-worth-now?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">If You Invested $1000 in Chipotle Mexican Grill a Decade Ago, This is How Much It&#8217;d Be Worth Now</a>
Image by chinnian on Flickr
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Engineered by Benzinga Neuro, Edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>
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The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. <a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Learn more.</a>
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Adidas Puts Yeezy History Behind, Rides Fashion High With Samba And Gazelle Shoes

Adidas Sees FY24 Revenue Growth Of Mid- To High-Single-Digit Rate; Sees Operating Profit Of € 700M

adidas (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ADDYY#OTC">ADDYY</a>) reported quarterly earnings of $1.04 per share. This is a 1140 percent increase over losses of $(0.10) per share from the same period last year. The company reported $5.94 billion in sales this quarter. This is a 4.88 percent increase over sales of $5.66 billion the same period last year.

adidas Q1 EPS $1.04 Up From $(0.10) YoY, Sales $5.94B Up From $5.66B YoY

Hibbett, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HIBB#NASDAQ">HIBB</a>) shares are trading higher by 18% in the&nbsp;<a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener">premarket session on Tuesday</a>.
Hibbett announced a definitive agreement in which&nbsp;JD Sports Fashion PLC&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/JDSPY#OTC">JDSPY</a>)&nbsp;will acquire Hibbett for $87.50 per share in cash, representing an aggregate&nbsp;enterprise value of approximately $1.1 billion.
Per share price represents a 21% premium to the April 22, 2024, closing price.&nbsp;
Last month, JD Sports anticipated a boost in the lackluster market from the Euro soccer championships, the&nbsp;Paris Olympics, and new styles of trainers and tracksuits featuring brands like&nbsp;Nike, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>),&nbsp;Adidas AG&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/ADDYY#OTC">ADDYY</a>), and HOKA, Reuters reported.
Under the terms of the definitive merger agreement, Hibbett has agreed to suspend the payment of dividends on its common stock and&nbsp;the&nbsp;purchase&nbsp;of&nbsp;shares under its existing Stock Repurchase Program through the transaction&#8217;s closing.
&#8220;Today&#8217;s announcement is a true testament to all that our Hibbett &#x7C; City Gear teams have built over the years and reinforces the strength of our brands, our close relationships with our vendor partners, and our team of dedicated colleagues across the country,&#8221; said Mike Longo, President and Chief Executive Officer of&nbsp;Hibbett.
The deal also represents a 29% premium to&nbsp;the&nbsp;120-trading day volume weighted average&nbsp;price&nbsp;of Hibbett.
&nbsp;&#8220;We&#8217;re thrilled to acquire Hibbett &#x7C; City Gear, combining two of the most respected athletic retail brands in the United States, as we continue&nbsp;to strategically expand&nbsp;our global multi-brand platform,&#8221; said Régis Schultz, Chief Executive Officer of JD Sports.
Following the&nbsp;closing of the transaction, Mike Longo will continue to serve as President and Chief Executive Officer&nbsp;and&nbsp;Jared Briskin will take on the role of Chief Operating Officer of Hibbett.&nbsp;
The transaction&nbsp;is expected&nbsp;to close in the second half of 2024.&nbsp;
Hibbett will maintain its corporate headquarters in Birmingham, Alabama.
Price Action: HIBB shares are trading higher by 18.6% to $86.00 premarket on the last check Tuesday.
Photo via Wikimedia Commons

HIBB

JDSPY

Why Is Athletic-Inspired Fashion Retailer Hibbett Stock Jumping Today?

In an unscheduled announcement, Adidas AG (OTC: <a class="ticker" href="https://www.benzinga.com/stock/addyy#OTC">ADDYY</a>) (OTC: <a class="ticker" href="https://www.benzinga.com/stock/adddf#OTC">ADDDF</a>) raised its&nbsp;2024 profit outlook after a better than expected first quarter.&nbsp;The good news come a&nbsp;month after&nbsp;the German sportswear giant posted its first annual loss in more than three decades and warned sales in North America will fall again due to the struggle of U.S. retailers with high inventory levels. Adidas has also been battling to restore its vitality after&nbsp;a costly split from Kanye West in October 2022&nbsp;and&nbsp;suspending sales of the highly profitable Yeezy sneaker line.
<h3>Adidas Provided Hope Of Recovery</h3>
The German sportswear giant&nbsp;now expects full-year operating profit of about&nbsp;$744 million&nbsp;or&nbsp;700 million euros&nbsp;, after previously guiding for&nbsp;500 million euros.
At the very least, Adidas shares have staged a recovery, outperforming&nbsp;even&nbsp;Nike&nbsp;Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nke#NYSE">NKE</a>)&nbsp;since&nbsp;the new&nbsp;CEO Bjorn Guldentook over.&nbsp;Gulden found that&nbsp;2023 ended better than&nbsp;what was expected at the&nbsp;beginning of the year, although this performance is certainly not good enough. Back in March, Gulden warned that the brand&rsquo;s weakness in North America will continue as&nbsp;Adidas&nbsp;expects&nbsp;sales to fall by around 5% this year&nbsp;due to overstocked stores and lower demand. In 2023, Adidas recorded a YoY sales&nbsp;drop of&nbsp;16%&nbsp;in North America, while fourth quarter alone posted a&nbsp;21%&nbsp;YoY drop. But, throughout the year, Gulden has been clearing the stock&nbsp;through&nbsp;outlet stores&nbsp;and lowered inventories by 24% or&nbsp;1.5 billion euros.&nbsp;Adidas is&nbsp;hoping to restore its&nbsp;market share from rivals&nbsp;like&nbsp;Nike,&nbsp;even as consumers&#39; overall appetite for sportswear&nbsp;is declining,&nbsp;with even&nbsp;Nike&nbsp;shedding 2% of its workforce in February. Therefore, the latest announcement provided the much-needed good news for the German sportswear giant as Gulden&#39;s efforts to re-energize the company have started to pay off.
Nike is missing its bold and disruptive innovation.
Last Friday, Nike&nbsp;CEO John Donahoe&nbsp;blamed remote work for the slowdown of innovation that is the DNA of Nike&rsquo;s brand. With employees working from home for more than two years now, developing a boldly disruptive product is tough to develop through Zoom.&nbsp;But Donahoe assured that&nbsp;Nike&rsquo;s innovation pipeline is as strong as ever&nbsp;as the sports company fights to protecting its market share with its restructuring plan announced in December. Over the next three years, Nike aims to lower&nbsp;costs by about $2 billion&nbsp;as it embraces for softer demand in the quarters ahead.&nbsp;
DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

Still-In-The-Woods Adidas Provides Glimpse Of Recovery With A Lifted Guidance

Adidas AG&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/ADDYY#OTC">ADDYY</a>) reported preliminary&nbsp;<a target="_blank" href="https://www.adidas-group.com/en/media/press-releases/adidas-delivers-better-than-expected-performance-in-the-first-quarter-and-increases-its-full-year-guidance" rel="noreferrer noopener">results&nbsp;</a>for the first quarter of 2024, with an 8% increase in currency-neutral revenues. In euro terms, revenues grew 4% to €5.458 billion in the quarter.
The company's gross margin improved 6.4% points to 51.2% during the quarter compared to 44.8% last year.
Operating profit marked a significant jump to €336 million from €60 million last year.
The latest Yeezy drop generated revenues of around €150 million and an operating profit of around €50 million in the first quarter.&nbsp;
The remaining Yeezy inventory would lead to additional sales of about € 200 million and no further profit contribution during the remainder of the year.
Guidance: Adidas increased its full year revenue guidance and sees currency-neutral revenues to increase at a mid- to high-single-digit rate in 2024 from the previous mid-single-digit rate growth.
The German footwear maker also increased its operating profit guidance to around €700 million from around €500 million.
Adidas expects unfavorable currency effects to weigh significantly on its profitability in 2024.
Image by chinnian on Flickr

Adidas Boosts Outlook On Strong Q1 Results: Details

Analyst Cedric Lecasble from Stifel Nicolaus reiterated a Buy rating on adidas AG (0OLD – Research Report) and keeping the price target at €260.00....

Buy Rating Upheld for adidas AG on Strong Brand Momentum and Sales Growth Prospects

In a report released today, Wendy Liu, CFA from Barclays maintained a Hold rating on adidas AG (0OLD – Research Report), with a price target of €21...

Barclays Keeps Their Hold Rating on adidas AG (0OLD)

In a report released today, Zuzanna Pusz from UBS maintained a Buy rating on adidas AG (0OLD – Research Report), with a price target of €275.00. Th...

adidas AG (0OLD) Gets a Buy from UBS

Goldman Sachs analyst Richard Edwards maintained a Hold rating on adidas AG (0OLD – Research Report) today and set a price target of €260.00. The c...

adidas AG (0OLD) Receives a Hold from Goldman Sachs

In a report released today, Jörg Philipp Frey from Warburg Research maintained a Hold rating on adidas AG (0OLD – Research Report), with a price ta...

Warburg Research Remains a Hold on adidas AG (0OLD)

In a report released on October 1, Jurgen Kolb from Kepler Capital maintained a Buy rating on adidas AG (0OLD – Research Report), with a price targ...

Kepler Capital  Remains a Buy on adidas AG (0OLD)

Deutsche Bank analyst Adam Cochrane maintained a Buy rating on adidas AG (0OLD – Research Report) today and set a price target of €265.00. The comp...

Deutsche Bank  Keeps Their Buy Rating on adidas AG (0OLD)

BNY Mellon International Stock Fund Q2 2024 Commentary

How Markets Might React To The October 2024 Inflation Report

adidas: Big Inventory Problems

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adidas AG (OTC: ADDYY, OTC: ADDDF) Investor Notice: Update in Lawsuit for Investors who lost money with shares of adidas AG (OTC: ADDYY, OTC: ADDDF) announced by the Shareholders Foundation

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