Adidas Faces Diminishing Growth Prospects Amid Double Downgrade

14 days ago

Chloe Malay

"Adidas was double downgraded by Bank of America. The analysts have said that they expect lower growth for the company going forward. Also said that investor interest in that sector was really starting to wane. Um in some what some said was is quite harsh. They said that the company's brand upcycle was old news. Um, so that maybe seems to indicate that the company might not be able to kind of always ride the wave of consumer enthusiasm for uh its retro sneakers, which was really what has been driving the growth over the last couple of years. Um, and this comes just a few weeks after Nike, which is obviously the most direct competitor, uh, warned that sales would also take a hit for them with a weakness in China in particular. So, it seems that across the board for those spots where stocks, there's maybe a lack of catalyst going forward and some weakness that we need to take into account."

Chloe Malay outlines that Adidas was double downgraded by Bank of America, with analysts expecting lower growth due to an outdated brand upcycle and waning investor interest. She emphasizes that issues in competitive markets, such as the recent warning from Nike regarding China, further highlight a potential lack of catalysts for Adidas in the near term.

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