Nike is aiming to deliver high-single to low-double digit revenue growth each year out to 2020, with earnings to grow at a faster rate. Adidas' strong financial performance has been driven by several factors, like the accumulation of a broad portfolio of brands, which include Adidas, Reebok, and Runtastic. Puma said on Tuesday it wants to lift its operating profit margin to about 10 percent of sales by 2022 at the latest, up from the 5.6 percent it reported in 2017, and versus 9.8 percent at Adidas and the 13.8 percent Nike saw in fiscal 2016/17. Adidas has over 800 factories based in 55 countries supplying it with all three product types. Adidas boasts the current World Cup holders (Germany) on its list, alongside Argentina, Spain, Belgium, Colombia, Egypt, Iran, Japan, Mexico, Morocco, Russia, and Sweden. Soccer365 notes that three teams that Nike has long supported (the US, Chile, and the Netherlands) did not qualify this year. Brand Value: Adidas is one of the most valuable brands in sports.According to Forbes, it is ranked at #3 position (Nike at # 1 and ESPN at # 2) with a brand value of $6.8 Billion. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. While Nike is still the industry leader in terms of sales, Adidas is the most profitable, with a gross profit margin close to 52.08%, compared to 44.70% for Nike. While both Nike and Adidas make the vast majority of their money from their core brands, the pair have other brands which help supplement earnings. North America and Western Europe are the pair’s two top regions for sales. Alternatively, if you don’t feel ready to start trading in any form, you can continue to learn more with IG Academy’s range of online courses. The company is also looking to grow free cash flow faster than net income and improve its return on invested capital. Adidas Strengths. TWEET. In 2019, the Adidas Group generated 23.64 billion euros in revenue. Adidas is still much smaller than Nike: Adidas brought in $5.3 billion in 2017 compared with Nike's $15.2 billion. Shareholders in both companies have enjoyed reliable dividend payments, but Adidas shareholders have seen more consistent growth in dividend payments than Nike shareholders over more recent years. For 2019, the German sportswear maker reported record earnings and revenues, driven by strong gains across all market segments. Earnings and sales momentum. We use a range of cookies to give you the best possible browsing experience. Nike and Adidas make the majority of their revenue from selling footwear, with apparel being the second biggest revenue driver for both. There are 32 teams competing in total. CFDs are leveraged products. (Photo by William Howard/Icon Sportswire via Getty Images), November 19, 2019 in London, England. Cyber Monday Shoe Deals 2020: The Best Sneaker Sales from Nike, Adidas, New Balance, and More Yang-Yi Goh 1 hr ago. Adidas vs. Nike vs. Let The Adidas Vs Nike Begin! Both companies are in strategic plans that run until 2020. Adidas is one of the world’s most famous companies in manufacturing sportswear and other accessories founded in 1948. This year the hot sporting event is the 2018 football World Cup (to be hosted by Russia between 14 June and 15 July. BEAVERTON, Ore., Mar. However, Adidas generates more of its revenue in the country than Nike does. The business was founded by a German named Adi Dassler in 1924, when he operated the company out of a wash room and registered the name ‘Gebrüder Dassler Schuhfabrik’. Registered address at 42 Rue du Rhone, 1204 Geneva, authorised and regulated by FINMA. The firm now sells over 850 million products each year in 160 countries. Africa forms a tiny portion of overall manufacturing for both companies. With sport playing an increasingly important role in more and more people’s lives, on and off the field of play, we operate in a highly attractive industry. (Photo by David M. Benett/Dave Benett/Getty Images for adidas LDN). We’re catalysing our next wave of long-term growth, while being clear-eyed about today’s dynamic environment,' – Nike. SHARE. Adidas has been a major sponsor of the FIFA World Cup since 1970, supplying match balls, referee uniforms, and official gear for the tournament. Chinese manufacturers supply 23% of all Nike’s production. ; An Iconic Brand with a Prestigious Legacy: Adidas has nurtured a strong and prestigious legacy and heritage over its … Revenue can be defined as the amount of money a company receives from its customers in exchange for the sales of goods or services. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. Ignoring the impact of currency movements, Adidas is expecting revenue to grow 10% to 12% per year until 2020 compared to 2015 … As well as the Nike brand, the company owns Converse, Hurley, and the Jordan brand (after basketball player Michael Jordan), while Adidas also owns the Reebok brand.