We think Adidas is a leader in sports and athleisure apparel with a narrow moat based on an intangible brand asset. While it has been beset with problems over the past few years, 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.