From the Sector

When adidas and Yohji Yamamoto first took to the runway at Paris Fashion week in October 2002 for the inaugural Y-3 collection, the brand with the Three Stripes and the avant-garde Japanese designer changed the worlds of fashion and sportswear. Over ten years later, in 2013, Y-3 introduced one of its most loved sneakers to date – the Y-3 QASA HIGH. Upon arrival, the boundary pushing silhouette made an instant impact in culture, and, having been worn by many of the world’s most forward thinking tastemakers, continues to do so to this day. Now, as adidas and Yohji Yamamoto ring in 20 years of collaboration, the iconic sneaker makes its timely return.

With Y-3 looking back on key moments, designs, materials, and silhouettes from the brand’s history, the Y-3 QASA HIGH once again takes center stage. Instantly identifiable by its expressive EVA outsole, which borrows from adidas’ 90s Tubular running technology, the daring silhouette features a neoprene sock-like upper with stretch mesh, elasticated strapping, a leather toe-cap, and suede heel lining. The avant-garde take on a high top trainer is then completed with a Poron® performance sockliner for cushioning.

Designed by Creative Director Alessandro Michele, adidas x Gucci merges the emblems of the House with those of the iconic sportswear brand. The collection expands on the sartorial streetwear creations that debuted on the runway with a spectrum of sport-inspired pieces, distinguished by the same kaleidoscopic aesthetics of the show.

To present the selection, Alessandro Michele envisioned a series of images inspired by archival catalogs as a cast of characters strikes dynamic poses against brightly colored backdrops alongside sporty props, captured by photographer Carlijn Jacobs.

With the heritage of both brands encoded in a trio of lines, a fixation on stripes plays out across ready-to-wear pieces that echo the silhouettes of athletic staples and leisurewear. Track pants feature the white Three Stripes of adidas on one leg, while the other is defined by the red and green Web of Gucci. Energetic prints portray how motifs like the adidas Trefoil and GG monogram find synergy to amplify two legacies. Conventionally formal pieces like leather heels, suede loafers, and silk scarves enter hybridized territory as well, as they are marked with casual codes. Similarly, retro aesthetics become intrinsically contemporary as they proclaim there are no rules when it comes to dressing up.

Reflecting a shared commitment to innovation, progress, sustainability goals and collective action, the collection features multiple pieces crafted with future-conscious material fabrications including polyester, cotton and viscose.

• Currency-neutral sales down 3% as supply constraints reduce top-line by € 400 million
• Western markets continue to show strong momentum with combined currency-neutral sales growing 13% across North America (+13%), EMEA (+9%) and Latin America (+38%)  
• Gross margin down 1.9pp to 49.9% driven by significantly higher supply chain costs
• Operating margin of 8.2% reflecting additional investments into brand, DTC, and digital
• Net income from continuing operations reaches € 310 million
• FY 2022 outlook for revenue and net income confirmed at the lower end due to the impact from covid-19-related lockdowns in Greater China

“In the first quarter, consumer demand for our brand and products was strong in all Western markets. Our combined sales in North America, EMEA and Latin America grew at a double-digit rate. Backed by an exceptionally strong wholesale order book and relentless focus on driving growth in our own DTC channels, we expect this positive development to continue for the rest of the year,” said adidas CEO Kasper Rorsted. “In the East, we will return to growth in Asia-Pacific in the second quarter, while we expect the challenging market environment in Greater China to continue. With strong double-digit growth in the vast majority of our markets, representing more than 80% of our business, we are well positioned for success in 2022. “

For the full press release, see attached document.

• Hypetex® to Showcase Coloured Carbon and Flax Fibre Solutions
• Hypetex, London, April 20 2022, Booth R52, Hall 6

Hypetex, the market leaders in colouring carbon and natural fibre materials, will demonstrate both the processing and sustainability benefits of its patented colourisation technology when it exhibits for the first time at JEC World 2022.

Exhibiting as part of the Composites UK stand (Booth R52), Hypetex will display its portfolio of uniquely coloured carbon fibre materials including 3K woven styles, ultra-lightweight spread tow fabrics, UD, and 3D materials. Hypetex will also present details of its latest eco-friendly coloured flax materials  which combine sustainably grown natural flax with sustainable colouring technologies. Hypetex patented colouring technology, available in an extensive palette of standard and bespoke colours and shades, can be applied to traditional woven fabric constructions, non-woven UDs, spread tow and bespoke fabric designs. The technology replaces a traditional coloured painted finish, providing an exceptional depth of colour to any composite part, improving thermal conductivity and reducing heat absorption ,whilst reducing the overall weight and processing time with no compromise to the mechanical performance of the composite structure.

By removing the need for painting, and the associated preparation steps, Hypetex technology provides manufacturers with a repeatable straight out of the mould coloured finish, that is not only easy to integrate into all composite processes, but also takes additional materials, consumables, and process time out of the component cost. As part of its continued commitment to leading the drive for more sustainable composite solutions, and its focus on improvements based on the ESG framework. Hypetex will also display its new range of coloured flax fibre textiles. The advanced colouring technology used protects the natural flax fibres throughout the high temperature processes required for composite production, avoiding burning or any discolouration issues common to natural fibres. In addition, Hypetex colouring solution is an ecofriendly sustainable alternative to traditional dyeing processes which are a significant cause of global water pollution.

The Hypetex team will be on hand throughout the show to provide additional details on Hypetex materials and their integration into the manufacturing process. Visitors to the Hypetex stand will be able see Hypetex carbon and flax products in raw fabric, and how its unique colour palette translates into the most distinctive finished moulded components. Hypetex partners SHD Composites, Textreme, Sigmatex and Angeloni will also have materials and components on display at JEC World 2022, including sporting equipment such as racquets, sticks, and skateboards, which highlight the massive range of processing options and potential applications for this novel technology. One such application, the adidas Kromaskin field hockey stick, with a unique Hypetex coloured Textreme spread tow carbon finish, will also be part of the JEC Innovation Planets feature.

• adidas TERREX athlete Laura Dahlmeier tackles Mont Blanc’s Brouillard Pillar with Thomas and Alexander Huber in the film, United By Summits
• The trio are kitted out in adidas TERREX’s new Techrock Mountaineering range
• The adidas TERREX Techrock collection gives climbers the lightweight technical wear required to defy the elements mountainside

Mountaineering is about reaching personal summits. It’s about showing your mettle, finding your freedom and winning in front of no one but yourself and nature.

It’s a version of success that adidas TERREX athlete Laura Dahlmeier is reacquainting herself with. A multiple Olympic and world champion, the German biathlete is used to the noise of winning in front of huge crowds. Now retired, Laura is reconnecting with the challenges of a sport that first gave her a taste of freedom as a child: climbing.
Laura sets herself a particularly formidable goal in United By Summits. In the film, she is joined by German climbing brothers Thomas and Alexander Huber for an ascent of Mont Blanc’s infamous Brouillard Pillar and the rarely-attempted Bonington Route made famous by British climber Chris Bonington in 1965.

For this, and any other climb, mountaineers require lightweight but rugged technical wear that ensures easy movement while defying the elements mountainside, allowing for complete focus on the rock and ice in front of them.

Introducing the adidas TERREX Techrock Mountaineering range – worn by Laura and the Huber brothers in United By Summits as they climb one of the Alps’ most demanding routes.

Keeping climbers dry is the adidas TERREX Techrock Light Gore-Tex Mountaineering Jacket, a lightweight, packable jacket with breathable Gore-Tex Active 3-layer membrane to repel water. Adjustable hood and cuffs are compatible with helmets and gloves.

For insulation on colder climbs, the adidas TERREX Techrock Year Round Down Jacket locks in warmth with adidas-patented HeatSeal baffle construction and PrimaLoft® Gold insulation in the shoulders and cuffs. Pertex® Diamond Fuse 20 Denier yarn provides resistance to abrasion along with a water-repellent DWR-finished fabric.

For rugged, weather-resistant legwear that keeps climbers moving freely on any ascent, adidas TERREX Techrock Mountaineering Softshell Pants balance comfort and protection. Flexible, wool-backed softshell fabric moves easily while a tough nylon surface protects against abrasion. A soft waistband helps prevent bunching under harnesses for an easy-moving silhouette – essential on those long climbing days.

Kitted out in this new adidas TERREX Techrock Mountaineering range 4,000 metres above sea level, Laura and the Huber brothers achieved their goals together.

• adidas expects double-digit sales growth in 2022

Major developments FY 2021

•    Currency-neutral revenues up 16% driven by growth in all markets
•    Excellent top-line momentum in EMEA, North America and Latin America with strong double-digit increases in each region
•    Double-digit growth in DTC reflecting improvements in both online and offline
•    Gross margin increases to 50.7% driven by higher full-price sales and better inventory management  
•    Operating margin increases 5.3 percentage points to 9.4%  
•    Net income from continuing operations grows more than € 1 billion to € 1.492 billion
•    Executive and Supervisory Boards propose dividend increase of 10% to € 3.30 per share

Outlook for FY 2022

•    Currency-neutral sales to increase at a rate between 11% and 13%, already reflecting up to € 250 million of risk in Russia/CIS business related to the war in Ukraine
•    Gross margin to increase to a level of between 51.5% and 52.0%
•    Operating margin to increase to a level of between 10.5% and 11.0%
•    Net income from continuing operations to grow to between € 1.8 billion and € 1.9 billion

Kasper Rorsted, CEO of adidas: “Unfortunately, we release our 2021 results in unsettling times. Our thoughts and prayers are with the Ukrainian people, our teams on the ground and everyone affected by the war. We strongly condemn any form of violence and stand in solidarity with all those calling for peace. We also provide immediate humanitarian aid to those in need of support. We will continue to follow the situation closely and take future business decisions and actions as needed, always prioritizing our employee’s safety and support.”

“In 2021, we delivered a strong set of results despite several external factors weighing on both demand and supply throughout the year”, Kasper Rorsted continued. “Wherever markets operated without major disruptions we have been experiencing strong top-line momentum. This is reflected in double-digit revenue growth in EMEA, North America and Latin America. While we continued to invest heavily into our brand, our direct-to-consumer business, and our digital transformation, we improved our bottom-line by more than € 1 billion. Taking it all together, 2021 was a successful first year within our new strategic cycle. In 2022, we will build on this momentum and continue to grow both our top- and bottom-line at double-digit rates amid heightened uncertainty.”

• This Black History Month, the brand is announcing a series of ongoing initiatives focused on celebrating, uplifting and supporting Black women - starting with elevating stories of their lived experiences
• New community actions include an accelerator program for social entrepreneurs; a series of adidas Community curriculums and mentorship opportunities; and an industry-changing design program for the next generation of creators
• Powered by its Impossible Is Nothing attitude, adidas is accelerating its mission to create real , lasting change for historically underserved communities

In a continuation of the brand’s Impossible Is Nothing attitude – and its biggest ever commitment to women – adidas is centering its Black History Month initiatives around celebrating, uplifting and supporting Black Women in sport, fashion and innovation.

Brought to life through athlete partners like Kahleah Copper, Erica Wheeler, Angel McCoughtry , Imani Dorsey, Kendra Harrison and Sarah Nurse , this year’s Black History Month platform focuses on the representation of Black voices by spotlighting the real-life experiences of Black athletes. Meanwhile, sustained community programming and actions will offer Black women creators with real-life opportunities for education, mentorship and growth.

Among many long-term community initiatives that create more opportunities for Black girls and women, adidas is deepening its commitment with the following programs launching this month and beyond:

• Cultivate & B.L.O.O.M (Building Legacies Out Of Movements) an adidas Accelerator - adidas has created an accelerator program that aims to close the opportunity gap that exists for social entrepreneurs of color.  
• S.E.E.D. (School for Experimental Education in Design) Program - S.E.E.D. is a two-year program at the adidas Brooklyn Creator Farm in partnership with Pensole Academy
• adidas Community Platform - adidas Community is a digital network for education, creative collaboration , and growth opportunities that pairs community members with community mentors

Other ongoing programming and partnerships includes work with adidas Legacy, the Black Women’s Player’s Collective, U.S. Soccer Foundation, Beyoncé’s BeyGOOD foundation, Pharrell’s Black Ambition, United Negro College Fund scholarsships, Blavity.org Growth Fellowship, Appeitie for Change youth programming, Wood U in partnership with Pensole and the Iovine & Young Academy and Sound Labs  - an initiative to foster creative collaboration , innovation and proactively support music programs in public schools lacking in financial support.

The Supervisory Board of adidas AG extended the appointment of Executive Board member Roland Auschel, responsible for Global Sales, by two years beyond 2022 until the end of 2024. Roland Auschel has been member of the Executive Board of adidas AG since 2013. At the same time, the Supervisory Board of adidas AG extended the appointment of Executive Board member Brian Grevy, responsible for Global Brands, by five years beyond 2022 until early 2028. Brian Grevy has been member of the Executive Board of adidas AG since 2020.

“On behalf of the Supervisory Board, I am very pleased to announce that we have extended the appointments of both Roland and Brian. Our long-term strategy ‘Own the Game’ has the consumer at its heart. Both Roland and Brian play key roles in bringing this consumer focus to life with their respective functions. We are convinced that they will continue the successful execution of our strategy together with the entire Executive Board”, stated Thomas Rabe, Chairman of the Supervisory Board of adidas AG.

adidas and IVY PARK CEO Beyoncé announce IVY HEART, a new capsule collection inspired by love , just in time for Valentine’s Day, from the ongoing adidas x IVY PARK creative partnership.

As with previous adidas x IVY PARK offerings, this latest collection features distinct looks with inclusive and in gender-neutral sizing in fashion styles, performance gear, footwear, and accessories. The line is available online at adidas.com on February 9th and February 10th in selection stores globally.

The Campaign
The campaign focuses on the guiding thematic color behind the collection. In the Western world, red is commonly associated with love , romance and sensuality. While in the East, red is attributed to good fortune and joy. Wherever you are, it’s clear that this color represents positivity. The concept is centered around bringing people together from all different backgrounds through this one color that’s sentimental to so many. This theme is illustrated through enhanced lighting, bold yet minimal production design, elevated styling and most importantly the international cast. Cultural cues from specific iconography and symbols are explored in visual motifs with sensitivity and intention. IVY PARK pays homage to various cultures inspired by this color, incorporating red through a futuristic yet authentic lens.

The Collection
No matter how you define it, love - most importantly love of one’s self - is at the core of IVY PARK ’s newest drop. Bold and sexy looks are an integral part of IVY HEART, which is aptly decked out in a spectrum of vibrant reds, playful pinks, and nuanced neutrals. In colors that include Candy Paint (Shock Pink), Lipstick Smudge (Red), Raspberry Beret (Power Red), Red, Red Whine (Cherry Wood) and Cheeks (Off-White), the line is punctuated by tactile materials like velour, ribbed knit, and faux latex.  IVY PARK ’s latest collaboration with adidas is further complemented by performance fabrics and graphic prints, allowing ample designs to mix-and-match from work out to night out.

The capsule collection’s design touchpoints are rooted in Beyoncé’s love of athleticism and fashion, merged with adidas’ performance and innovation. The references culminate in a collection of silhouettes that are sporty, stylish, and above all, unique. Conceived around three pillars of foundation, active, and fashion, IVY PARK ’s latest collection is highlighted by the Velour Dress and Tracksuit, Faux Latex Puffer, Pique Jumpsuit and Sequin Duster. Accessories include a 5-Panel Hat, a clutch and a Heart-Lip Belt Bag.

Footwear consists of both on-the-court and off-duty models.  The range is highlighted by a new iteration of the classic Stan Smith sneaker in Cheeks (Off-White), with a rubber dipped midsole.  Additionally, the collection introduces a new silhouette, the IVP Superstar Plim, a mule style shoe inspired by the iconic adidas Superstar in Cheeks (Off-White).  The line also features a new colorway of the IVP Savage sneaker in Cheeks (Off-White), a IVP swim slide in Lipstick Smudge (Red) and the Ultra boost in Candy Paint (Shock Pink).

• Multi-year share buyback program started

adidas today announced the start of the first tranche of its multi-year share buyback program announced in December 2021. The company intends to repurchase own shares in an amount of up to € 1 billion in the first quarter of 2022.

In total, under the new program, adidas plans to buy back own shares for up to € 4 billion until 2025. Taking into consideration the € 1 billion share buyback completed in 2021 already, the company intends to return up to € 5 billion to its shareholders through regular share buybacks alone during the five-year strategic cycle of the new company strategy ‘Own the Game’. The share buyback activities are complemented by annual dividend payouts in the range of 30% to 50% of net income from continuing operations.

Strong cash returns are a key component of the company’s strategy. As part of ‘Own the Game’ adidas intends to generate substantial cumulative free cash flow until 2025. The majority of it – between € 8 and € 9 billion – will be distributed to adidas’ shareholders. On top of that, the company plans to return most of the cash proceeds from the Reebok divestiture to its shareholders after closing of the transaction, which is expected to occur during the first quarter of 2022.

As with previous share buybacks, adidas intends to cancel most of the shares repurchased during the program, which would reduce the number of shares as well as the share capital accordingly.