Bank of America Alerts: Adidas Struggles Amid Sports Sector ‘Bubble Burst’

Adidas sees its shares fall in value after Bank of America issued a recommendation warning of a possible slowdown in the German sports giant’s growth. The company’s shares have retreated as much as 7.6% in the wake of the warning, despite the expected boost from the 2026 World Cup.

According to specialized media, Bank of America analysts believe that Adidas will return to single-digit growth in 2026, which is a sharp slowdown compared to previous years. According to the latest data published, the company grew by 2.98% in the third quarter of the year.

Beyond the boost expected from the 2026 World Cup, analysts warn that what happens to Adidas after that remains to be seen. They also point to a possible downturn spurred by the growth of competitors such as On, Puma and Asics. They say, however, that the sportswear sector is losing interest among investors. In this regard, Bank of America also downgraded JD Sports.

Adidas shares have fallen by 7.6% following the warning from the American bank

On posted sales of 1,475.8 million Swiss francs ($1.86 billion) in the first half of 2025, up 37% from the same period last year, when it sold for 1,075.9 million Swiss francs ($1.35 billion). However, its net result plunged by 87%.

Puma, for its part, is going through one of the weakest moments in its history, with an 8.5% drop in sales in the first nine months of fiscal 2025. Asics, on the other hand, shot up its profit by 30% in the first nine months of its last fiscal year, with sales of 625,055 million yen ($3.99 billion), up 18.95%.

On the other hand, Nike, Adidas’ main competitor, continues to play a key role in the sports fashion sector. Analysts indicate that a possible recovery of the U.S. company, with Elliott Hill at the helm working to turn the results around, may also hurt the German company. While Nike is still not earning at the pace it has historically done, it has halted its decline in the first half of the year.

For Bank of America, sportswear companies are facing a trend shift: the use of sportswear as everyday clothing, which for years drove growth in the sector, is losing steam. As a result, brands can no longer rely on market expansion for growth and must compete more directly for share by standing out for genuine innovation in performance or brand strength.

Adidas ended the first nine months of fiscal 2025 with a 52.17% jump in net income and sales up 5.73% to €18.73 billion. In the third quarter, profit returned to normal and grew by 1.89%, while sales rose by 2.98% to €6.63 billion.