Adidas (Adidas AG) is one of the leading sporting goods manufacturing companies across the globe, offering products to a wide clientele.
Other than its US rival Nike, no other company has challenged the reach of Adidas globally when it comes to producing sportswear. In the top 50 apparel ranking, Adidas has grabbed the 5th spot in 2022.
Adidas is considered the leading sportswear brand in Europe, where the company has also gained partial ownership of a technical fitness firm and a football club.
You must be wondering – what is Adidas net worth? This article will give you an insight into Adidas net worth, its history, presence globally, and growth.
Who Currently Owns Adidas?
Kasper Bo Rørsted is the current Chief Executive Officer and Management Board Chairman since 2016. The journey started in Herzogenaurach, German with Adolf “Adi” Dassler, who made sports shoes after coming back from World War I.
Adidas AG is a German corporation established in 1924 and rebranded in 1949. The specialization of Adidas is designing and manufacturing clothes, apparel, shows, and other accessories. It is the largest sportswear producer in Europe and leads Nike across the globe.
What Does Adidas Logo Mean?
The three stripes are the symbol representing the focus of the company on variety. These three stripes are used in all three different logos of Adidas. The three trefoils leaf-shaped logo is used for the Originals product line that involves shoes and casual apparel.
The three leaves symbolize the 3 portions of the world, including Europe, Northern America, and the Asia Pacific, where its products are sold.
Furthermore, the shape of the mountain on the logo illustrates the notion of conquering difficulties and chasing your dream in any circumstances. This logo is specific to the Performance line designed and manufactured for athletic professionals.
Lastly, the circle logo is used for Style collections designed in alliance with famous designers. The round shape of the logo represents the globe and swift adaptations to changes.
Why Is Adidas Worth So Much?
Adidas is growing and availing opportunities to generate more revenues leading to increased Adidas net worth. For instance, Adidas holds 8.33% stakes in the famous German football club, Bayern Munich. Moreover, to better compete with Nike, Adidas has acquired the shares of Runtastic GmbH for 240 million US dollars.
This ownership will allow Adidas AG to improve running technology in relation to fitness-tracking technology.
Adidas is famous for tailoring shows as per the needs of the athletes and enhancing their performance while providing high-quality products.
Adidas provides high-quality products and markets its products rigorously in different sports through partnerships with different professionals, teams, and clubs. As a result, it reaches its target audience across the globe.
Due to all these aspects, the business has been growing and Adidas is maintaining its place as the second-greatest brand in sportswear production.
As Adidas aims to further invest in using technology in the development of products for elevating customers’ experience, promoting sustainability, and increasing brand credibility, these numbers are likely to increase further.
What Is the Presence of Adidas Globally?
Currently, 60,661 employees work for Adidas in over 160 countries. For footwear, Adidas is one of the largest retailers in the US, China, and Europe.
In 2021, a total of 1,184 stores were operating across the world, similar to 2020. However, the number of stores has decreased as compared to statistics from 2016-2019.
Presently, Greater China and North America are among the most significant markets for Adidas because these regions altogether accounted for almost 50% of the retail of the company per year. Only over one-third of the sales of Adidas come from Europe, the Middle East, and Africa (EMEA) region.
What Are the Net Sales for Adidas?
The products of Adidas AG are sold under the brands, Reebok, TaylorMade, and Adidas. Considering the product family, the breakdown of net sales in 2021 is presented below:
- Footwear had the highest net sales, which was 11,345 million US dollars (4%).
- Apparel-related net sales accounted for 41% costing 8,719 million US dollars.
- Gear product type was linked to a net sales of 1,188 million US dollars, representing 6% of total sales.
All three product types showed an increase in sales as compared to 2020. In 2021, Adidas produced approximately 340 million shoe pairs and 379 million sportswear units globally.
Adidas is one of the leading brands in the sportswear industry with a powerful position in the footwear and apparel line. The company’s products offer cutting-edge designs and technological innovations to athletic professionals from different sports who seek to attain peak performance.
Hence, the net sales of footwear and apparel are the highest, which contribute majorly to Adidas net worth.
How Did Adidas Grow and What’s It Like Now?
The journey of two brothers started in a laundry room in 1924 at Dazzler Brothers Shoe Factory. However, the split between the two brothers led to the creation of rivals Puma and Adidas in 1949, and both brands have seen massive success since their existence.
Adidas has always been a better rival in terms of performance. The net income of Adidas was 674 billion US dollars as compared to 229.9 US dollars of Puma in 2021. The Adidas net worth is 29.49 billion US dollars in contrast to 5 billion US dollars as of 2022.
These statistics show how much both the companies have grown, particularly Adidas. Presently, Adidas has been recovering like other sporting goods companies after the pandemic and maintaining its position in the share market against its rivals.
Conclusion: Adidas Net Worth
Adidas generates revenue of 25.1 billion US dollars, earning around 2-2.5 billion US dollars per year in profit. The Adidas net worth is 29.49 billion US dollars by August 2022, and a 2% increased brand value of 14.6 billion US dollars in comparison to 2021.
It is the second largest sportswear manufacturer with more than 60,000 employees working in around 2200 stores in 160+ countries.
Though Adidas has faced extreme competition from different brands like Nike, Puma, Under Armour and ASICS, it has managed to keep its position in the market and continue to grow.