We think Adidas is a leader in sports and athleisure apparel with a narrow moat based on an intangible brand asset. While it was beset with problems a few years ago, its recovery is progressing well. In both 2024 and 2025, Adidas achieved sales and profitability that were well above original expectations. It achieved double-digit currency-neutral sales growth in these years despite inconsistent demand for sportswear.