adidas Kids & Youth

# adidas AG — Corporate Overview (2025) **adidas AG** is a German multinational corporation headquartered in Herzogenaurach, Bavaria, founded in 1949 and publicly traded on the Frankfurt Stock Exchange (ticker: ADS). The company operates a capital-light model, focusing on design and brand management while outsourcing manufacturing to approximately 430 Tier 1 suppliers across Asia. In 2025, adidas achieved record annual revenue of **€24.81 billion** (~USD $29.5 billion), with operating profit surging 54% year-over-year to **€2.056 billion**, marking a strong recovery following the Yeezy brand separation. The company employs approximately 62,035 people globally and serves consumers in over 160 countries through around 1,900 owned retail locations and 15,000 franchise stores. The company's diverse product portfolio includes athletic apparel, footwear, and accessories across men's, women's, and children's categories. Under the Kids & Youth segment, adidas offers children's footwear (including smart footwear with wearable technology), everyday and performance children's apparel, and sustainable fashion lines utilizing recycled materials through partnerships such as the Parley collaboration. The brand has demonstrated strong momentum driven by the "Terrace Trend" and popular retro styles like the Samba and Gazelle silhouettes, which appeal significantly to younger consumers. In Greater China, adidas maintains two-digit growth with 60% of products sold locally now designed in China, and the company recently relocated its regional headquarters to a new Shanghai West Bund campus capable of housing 1,500 employees. **Risks and Challenges:** The company faces potential headwinds from U.S. tariff policies, which could add approximately $200 million in annual costs, creating pricing pressure. Supply chain risks include inflation and labor cost pressures in production regions such as Pakistan, while macroeconomic volatility—particularly hyperinflation in Argentina—generated over €1 billion in negative currency translation impacts during the fiscal year. **Strategic Outlook:** Adidas is pursuing its "Back to the Core" strategy, establishing its first Global Capability Center outside Asia in Chennai, India, to diversify service operations and reduce market dependencies. The company announced a €1 billion share buyback program in February 2026 and continues expanding its sports marketing presence through partnerships such as the Mercedes-AMG Petronas F1 team, positioning for major sporting events including the 2026 FIFA World Cup in North America.