20. December 2019 | 16:41 CET
Adidas, Nike, RYU Apparel - when does the trend turn?
The fashion world is an exciting business. Once a company has grown into a brand, profits can bubble up. If a company is wrong with its strategy or its line, it can get rough. There are various labels that have had to survive difficult times in the past and are now doing well again. Adidas and Nike are without doubt among the biggest players worldwide. But there are also exciting newcomers who may be among the big names in a few years.
time to read:
ISIN: DE000A1EWWW0 , US6541061031 , CA74979J1003
Share price performance of over 50%
The German sports equipment supplier Adidas is undisputedly one of the most popular and successful brands for leisure and professional sports. Around the globe the brand with the three stripes stands for quality. On the stock exchange, Adidas has delivered a good share price performance for its shareholders in 2019. On the first trading day in the new year, the shares changed hands at less than EUR 184.00. Today, Friday, shortly before Christmas, the company's shares are trading at over EUR 289.00. The share price development of +105.00 EUR or significantly more than +50% is a great gift.
Almost 40% yield in 2019
The share price performance of the largest US supplier of sportswear is also quiet well. From the beginning of the year until today the shares of Nike have increased from below EU 64.00 to currently above EUR 89.00. The increase of over EUR 25.00 or almost 40% should also please shareholders at the end of the week. The market value of Adidas at the current price level is approximately EUR 57 billion and its competitor Nike is valued at approximately EUR 143 billion.
Price potential after financing round
The young label RYU Apparel is based in Vancouver, Canada, and works from there on developing the brand. The product line is also sporty and very high quality. In contrast to the big competition, RYU Apparel focuses on the longer and more timeless success of its products. As a result, the margin can remain stable and the product portfolio can be offered to the target group in the shops of various major cities in North America and presented online in a more practical way in the initial phase. The company is currently working on financing to further expand its growth. As soon as the capital injection is completed, the shares should pick up speed again.