adidas Group: Impressive start to the year

Yesterday's better-than-expected Q1 preliminary results again confirmed adidas’ strong comeback, supported not only by powerful and structural drivers in sporting goods markets (not new) but also by positive results from the new consumer-centric organisation and improved execution (new). Following this publication and the more optimistic FY outlook, we are revising up our FY16-17 assumptions (+7% on average) and our normative operating margin (10% vs. 9.5% previously), leading to our new FV of EUR122 vs. EUR108. Buy recommendation confirmed.