How Investors May Respond To adidas (XTRA:ADS) Entering Safety Footwear With GLO Partnership

• In October 2025, adidas Brands B.V. and GLO, a Bunzl plc business unit, announced a long-term partnership to launch 'adidas pro work', a high-performance safety footwear line targeting professionals in construction, maintenance, and logistics, with the first models expected in the second quarter of 2026 through select distributors.
• This move marks adidas' entry into the safety footwear category, reflecting an effort to broaden its product portfolio and reach new market segments by combining protection, comfort, and brand-driven style.
• We'll explore how adidas' entry into safety footwear through its partnership with GLO could reshape its investment narrative and growth outlook.

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adidas Investment Narrative Recap

To be an adidas shareholder today, you need to believe the company can leverage its innovation, global reach, and brand strength to drive recurring sales growth, while navigating rising U.S. import tariffs and competitive pressures in North America. The recent safety footwear partnership with GLO, while long-term in focus, is not expected to materially influence near-term catalysts or address the most pressing risk, margin pressure from higher sourcing costs and constrained pricing power in the U.S.

Among adidas’ recent announcements, the exclusive release of the limited-edition State Fair Superstar sneakers with Hibbett illustrates how the company continues to rely on brand collaborations and creative launches to engage core consumer segments. This approach supports the core catalyst of expanding premium offerings and driving sell-through in key markets, especially as new product lines like “adidas pro work” target a broader audience.

By contrast, investors should be aware that rising U.S. tariffs pose an ongoing threat to margins, especially if...

Read the full narrative on adidas (it's free!)

adidas' narrative projects €31.1 billion revenue and €2.5 billion earnings by 2028. This requires 8.2% yearly revenue growth and a €1.3 billion earnings increase from €1.2 billion today.

Uncover how adidas' forecasts yield a €237.35 fair value, a 27% upside to its current price.

Exploring Other Perspectives

Ten independent fair value estimates from the Simply Wall St Community span a wide range from €160.60 to €752.79. With varied opinions on future growth, consider how ongoing tariff headwinds may affect adidas’ ability to achieve ambitious earnings forecasts and why differing views persist on earnings resilience.

Explore 10 other fair value estimates on adidas - why the stock might be worth over 4x more than the current price!

Build Your Own adidas Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your adidas research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free adidas research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate adidas' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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