5 Most Valuable Health and Fitness Companies in the World

2. Adidas AG (OTC: ADDYY)

Market Cap: $70.12 billion

Adidas AG (OTCMKTS: ADDDF) is a Germany-based multinational corporation that was founded in 1949. Today it has a product portfolio that is not only huge but ranges from footwear and clothing to sports-related equipment. Employing more than 60,000 people including 170 subsidiaries that include Reebok, Rockport, and CCM-hockey as part of the Adidas Group.

Adidas’s highest ever sales recorded was in 2019 when it had net sales of 23.64 billion US dollars. Only its prime competitor Nike, Inc rivals it. Additionally, the brand was rated among the most valuable German brands in 2019, making it one of the most valuable health and fitness companies in the world.

In the Q2 2021 investor letter of Polen Capital, the fund mentioned Adidas AG (NYSE: ADDYY). Here is what the fund said:

“During the second quarter, the leading absolute contributors to performance (includes) Adidas. Shares of Adidas, the German athletic footwear and apparel maker, outperformed in the quarter as the company’s recently announced “Own the Game” strategy rolled out globally. This plan will leverage Adidas’ digitalization capabilities and innovation. In last quarter’s commentary, we discussed the potential impact increasing digitalization and customer connectivity can have on Adidas in the coming years. On product innovation, a robust product pipeline has helped drive strong growth across categories. Management optimism about the pipeline is a sign that recent trends could continue. Innovation runs the gamut from sustainable or recyclable materials to high performance footwear. A steady stream of new product launches, called activations, evenly spaced out across a calendar year has drawn digitally connected consumers to check in and stay abreast of the latest developments. This connectivity is further supported by steady spending on marketing and endorsements. Together, these drivers delivered strong brand momentum across the business as sales grew.

Margins have nearly fully recovered to pre-pandemic levels, and nearterm results indicate to us that Adidas is continuing to recover from the pandemic impact a year ago. We remain focused on the next five years and applaud management for navigating a tough environment while simultaneously putting a strategy in place for 2025. We believe Adidas could grow earnings at a high teens rate from 2021-2025 after normalizing from the extremes of COVID-19.”