February 11th, 2021 | 12:13 CET
Adidas, RYU Apparel, Zalando - Athleisure look: not only look good, but perform well too!
Table of contents:
The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.
ADIDAS AG - Here, Athleisure means Sports and Loungewear
Adidas was a remarkably consistent growth stock until the Corona crash in March 2020. However, since the price crash, it has been on a steady upward trend again, even if the previous year's level has not quite been reached. Adidas, like its fiercest competitor Nike, was late to jump on the athleisure trend.
The world's number two in the industry sells its fashion somewhat coyly under the terms sports and loungewear. In the meantime, however, casual fashion has become an essential part of the product range. Corona in particular and the associated lockdowns are likely to have led to a significant increase in demand for athleisure clothing. As a result, this market segment has performed better than average overall.
Long-term investors can now add an excellently positioned and consistent growth stock to their portfolios at a relatively low price.
RYU APPAREL INC - Forward with old hands and fresh money
RYU Apparel Inc, founded in 2008, is the manufacturer of urban sportswear in the Canadian sports and apparel metropolis of Vancouver. At the turn of the year, Cesare Fazari, CEO since March 2020 of RYU Apparel Inc, announced various course-setting measures for 2021. These plans included the successful raising of nearly CAD 6 million in additional capital and the formation of various strategic partnerships, including with Zoom Media (indoor advertising in gyms), Afterpay (payment service provider for top retailers) and Branded Entertainment Inc. (product placement in the top television series "The Count").
Having succeeded last year in attracting top personnel such as Grant Matzen (wholesale, formerly with Under Armour, Vans and Quicksilver, among others), James Chapman and Andrew Parr (both for golf, the former once with Perry Ellis and Callaway), RYU has now been able to sign Rob Blair as COO. Blair, who has more than 20 years of industry experience, including at Nike, GAP and Lululemon, is a transformation specialist tasked with implementing the visionary growth strategies outlined by CEO Fazari. These strategies include the new e-commerce store RYU.com, which is expected to increase the online sales share.
Launched this year and described by the Company as Phase 3 of the growth plan, it is expected to boost RYU's sales to more than CAD 1 billion by 2030. With a current CAD 40 million market capitalization, this is an ambitious goal, but not an impossible one when considering some competitors' development in this field. Given the excellent prospects, the current share price is an invitation to buy.
ZALANDO SE - Corona: Scream with happiness!
Corona has turned out to be a lucky break for the mail-order business. While the trend towards ordering goods, especially clothing, was already growing strongly in recent years, Corona has provided an additional kick. Never have more goods been ordered than in the lockdown phases during the pandemic.
Among others, the German clothing and shoe mail-order Company Zalando SE benefited from this in particular. The online retailer increased its sales in the third quarter of 2020 by a whopping 22% to just under EUR 1.85 billion. At the beginning of the pandemic, the group was able to release provisions in the amount of EUR 35 million after the spring and summer collections sold exceptionally well. In addition, Zalando wisely relied not only on its own web store but also steadily expanded its digital partner programs. This was reflected in the share price: after plummeting by more than a quarter to just under EUR 30 in March 2020, the stock has since more than tripled in value. The question is whether the Germans will continue to order their goods on the Internet after the end of the Corona restrictions or whether a new appetite for stationary retail will set in.
With a P/E ratio of over 100, the stock certainly doesn't seem cheap at the moment. On the other hand, analysts expect the P/E ratio to fall to below 30 by 2024. So, it's still a bet that risk-tolerant investors can take with a view to the development of other mail order companies.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.
Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.