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May 13th, 2021 | 08:55 CEST

Evotec, RYU Apparel, Adidas - This is just the beginning

  • Investments
Photo credits: pixabay.com

Earnings season is in full swing. Yesterday, Bayer, Commerzbank and Varta, among others, presented good figures. Despite Corona restrictions and problems in the supply chain, sporting goods manufacturers were also able to deliver significant jumps in sales. Puma increased its sales by 26% in the first quarter. Along with the home office, sports at home or outdoors is the new trend. And this trend is likely to stay even after the pandemic. The potential for the sporting goods industry is enormous.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: DE0005664809 , CA74979J4072 , DE000A1EWWW0

Table of contents:


    Sport at home is all the rage

    If you ask which industries were the winners of the Corona pandemic, you almost always get the same answers. Alongside delivery and parcel services, e-commerce flourished and helped online companies achieve rapid growth rates. The fact that weights for strength training sold out by the spring of 2020 was less well known. The closure of fitness studios also meant that the market for fitness influencers, who called for paid home workouts via social networks, was booming. Bicycles, rowing machines and treadmills were also difficult to obtain, and if so, at significant price premiums. While demand for home exercise equipment has returned to normal after an initial surge, exercise at home or outdoors remains a big deal. Many people do not return to the gym even after studios open and cancel their memberships. More than a million cancellations have flown into the gyms since the pandemic broke out.

    The transformation of the business suit

    The Corona home office is also likely to change business attire in the future, an opinion shared by Adidas CEO Kasper Rorsted, among others. In his view, there should be significantly fewer ties and suit shoes after the comeback to the office. Although employees will hardly enter the workplace in Adilettes or gray sweatpants, the work outfit of the future will be more casual. Even before the pandemic, the sporting goods giant announced that it would be launching a new fashion line somewhere between sportswear and casual wear. This philosophy has long been pursued by the award-winning clothing manufacturer RYU Apparel. "Respect Your Universe" aims to create a perfect symbiosis of the three areas of life - fashion, sports and lifestyle - in its collections, thereby occupying a unique selling point in a lucrative niche.

    Ambitious goals

    CEO Cesare Fazari has a vision to build the leading urban apparel brand and be mentioned in the same breath as the top brands. "Respect Your Universe," as the Company is known, should see RYU valued in the billions by 2030. Currently, the stock market value is a slim EUR 9.0 million. By 2025 at the latest, the Canadian Company expects annual sales of CAD 100 million. The Company aims to achieve this with innovative products, strong collaborations and the development of a digital ecosystem. The next goals on the list of the active management are the reopening of the flagship stores and the expansion into Europe. Last month, RYU Apparel also announced the acquisition of Kosan Travel Apparel, which has now expanded the product line to include functional travel apparel.

    CEO Cesare Fazari issued a short-term target of positive growth from the fourth quarter of 2021. The planned growth financing through the issuance of a convertible bond was suspended due to the weak market conditions. It will then be reactivated when the general mood improves again due to the Corona pandemic. RYU Apparel's stock has the potential to be a long-term success story. The business model and the management team with experienced players look convincing. However, there are still enormous challenges ahead for the future.

    Top dog with strong figures

    Alongside Nike, the sporting goods manufacturer Adidas has been at the top of the industry for years. Adidas now have reported figures for the first quarter. The Herzogenaurach-based Company was able to increase its sales by 20%. Business in China was outstanding. Overall, profits amounted to EUR 502 million, compared to EUR 26 million in the same period last year. Adidas also raised its estimates for the full year and expects a low double-digit percentage increase in sales.

    Management faced headwinds from shareholders regarding innovation. "Investments in the Adidas brand should be increased by EUR 1 billion by 2025 compared to 2021," it said. In total, Adidas wants to invest EUR 10 billion more in the new "Own the Game" medium-term strategy than in the previous program, he said. "We are investing in growing," Adidas-CEO Rorsted said.

    Evotec continues to grow

    Drug discovery Company Evotec also believes it is on track to meet its full-year guidance. In addition to its growing network of global pharmaceutical companies, the Company is also making progress in developing its drug series. At the beginning of the year, revenues increased by 11% year-on-year to just over EUR 133 m.

    The Company's operating business, however, had to be adjusted to reflect the decline in revenues. However, Evotec's operating business suffered as the previous year's quarter was impacted by a payment from the French pharmaceutical partner Sanofi, which resulted in positive special effects. In addition, unfavorable currency effects had a negative impact. Earnings before interest, taxes, depreciation and amortization adjusted for special effects were thus around EUR 21 million in the first quarter, compared to EUR 30 million in the first quarter of 2020. Revenues are expected to grow to more than EUR 1 billion by 2025.


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    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



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