Our Share
2006 was a difficult year for the adidas AG share, in which it was unable to continue the excellent performance it delivered in 2005 and previous years. Concerns surrounding Reebok’s short-term business outlook and the state of the North American sporting goods industry burdened our share especially in the second half of the year and could not be offset by the continued strong operational performance of the adidas and TaylorMade brands.
adidas AG Share Unable to Match Strong 2005 Performance
After having significantly outperformed the DAX-30 and the MSCI World Textiles, Apparel & Luxury Goods Index in 2005, the adidas AG share could not sustain this positive momentum in 2006 and decreased 6% over the course of the year. Our share thus underperformed the DAX-30 and the MSCI World Textiles, Apparel & Luxury Goods Index which increased 22% and 24%, respectively. The increase of the DAX-30 was driven by strong company earnings, buoyant mergers and acquisitions activity as well as the improving macroeconomic environment. The MSCI Index gained on the back of strong company earnings throughout the sector. The positive development was only interrupted in May and June, when a strong rise in commodity prices and fears of a sharp economic downturn in North America resulted in significant losses of the DAX-30 as well as other global indices. However, worries about inflation and inherent interest rate hikes abated quickly. The stock markets in the rest of Europe, the USA and Japan also increased over the year, albeit to a lesser extent.
adidas AG Share Member of Important Indices
The adidas AG share is included in a variety of high-quality indices around the world, most importantly the DAX-30, Germany’s premiere stock index, and the MSCI World Textiles, Apparel & Luxury Goods Index, which comprises the Group’s major competitors. At December 31, 2006, our weighting in the DAX-30, which is calculated on the basis of free float market capitalization and 12-month stock market turnover, was 1.12% (2005: 1.39%). Our reduced weighting compared to the prior year is a consequence of a decrease in market capitalization that could not be offset by a strong increase in share turnover. Adjusted to reflect our share split, average daily trading volume of the adidas AG share excluding bank trades rose from almost 1.7 million in 2005 to more than 2.0 million in 2006, highlighting the increased interest in our Group. Within the DAX-30, we ranked 24 on market capitalization (2005: 18) and 21 on turnover (2005: 21) at year-end 2006.
The adidas AG Share
| Number of shares outstanding | |
| 2006 average | 203,386,1041) |
| At year-end 2006 |
203,536,8602) |
| Type of share |
No-par-value share |
| Free float | 100% |
| Initial Public Offering | November 17, 1995 |
| Stock exchange | All German stock exchanges |
| Stock registeration number (ISIN) |
DE0005003404 |
| Stock symbol |
ADS, ADSG |
| Important indices | DAX-30 |
|
MSCI World Textiles, |
|
| Deutsche Börse Prime Consumer |
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| Dow Jones STOXX |
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| Dow Jones EURO STOXX |
|
| Dow Jones Sustainability |
|
| FTSE4Good Europe |
|
| Ethibel Excellence |
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1) Figures adjusted for 1: 4 share split conducted on June 6, 2006. |
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adidas AG Market Capitalization at Year-End € in millions
