Adidas is moving off the traditional grass and into the digital arena. The sportswear giant has partnered with mobile game Brawl Stars for a two-week in-game tournament dubbed the “Adidas Starr Cup,” which runs until early July. Players compete in a new football mode while characters sport exclusive Adidas skins — the first apparel collaboration for the game. The move is a clear attempt to tap into the gaming culture and hook a younger, digitally native audience.
The crossover doesn’t end online. Starting August 1, Adidas will roll out a junior collection in its stores featuring T-shirts, tracksuits, and modified versions of its iconic Samba and Superstar sneakers. The strategy is designed to blur the line between virtual gameplay and physical merchandise, giving the brand a fresh touchpoint in a demographic that increasingly spends its time on mobile screens.
Investors have applauded the broader turnaround story. The stock closed at 176.85 euros most recently, after an earlier session saw it at 176.20 euros. Over the past 30 days, the shares have surged almost 19 percent — a rally that has lifted the market capitalisation to around 31 billion euros. Yet the speed of the advance has pushed technical indicators into cautionary territory. The Relative Strength Index now hovers around 70–71, a level that typically signals an overbought condition.
Chartists point out that the shares trade a comfortable 15 percent above their 50-day moving average and more than 11 percent above the 200-day line. While that highlights strong momentum, it also means much of the good news is already priced in. The distance to the 52-week high of roughly 212 euros remains nearly 17 percent, a reminder that the stock has not yet reclaimed its former glory. Moreover, the seven-day change is barely half a percent, suggesting the initial burst of buying pressure is losing steam. A period of consolidation above key moving averages would be healthy, analysts argue.
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Under the surface, the operational recovery is real. Adidas is seeing sustained demand in its direct-to-consumer channel and maintaining discipline on full-price sales. Management confirmed the full-year outlook despite currency headwinds and US tariff uncertainty. The company also placed a bond in May and is pressing ahead with a share buyback programme that will see all repurchased shares cancelled — a move that typically signals confidence in cash-flow generation.
Stability at the top adds to the narrative. The supervisory board extended CEO Bjørn Gulden’s contract, locking in the leadership behind the ongoing turnaround. For a brand that lost its way in recent years, that continuity is a significant vote of confidence.
With annualised volatility of nearly 30 percent, Adidas remains a high-octane holding. The near-term risk of a pullback is real after such a steep climb. But the medium-term story — a proven operational recovery, a smart push into gaming culture, and a disciplined capital allocation strategy — keeps the bulls engaged. The real test will come in August when sales data from the Brawl Stars-linked collection provides the first concrete read on whether the digital gamble pays off.
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