adidas Group: adidas is confident for H2 despite golf dragNEUTRAL, Fair Value EUR79 (+8%)
At the conference call yesterday management gave more details on three hot topics: (i) TMaG: while options regarding the future of the golf business will be explored, ADS has just launched a turnaround plan that will be more significant than last year, (ii) Russia: the store network rationalisation has already paid off at the opex level and (iii) Runtastic: management presented briefly how Runtastic would enter into ADS’s ecosystem and interact with its current digital technologies, although no specific item of the P&L was communicated. Also, management did not provide any indication regarding hedging rates for 2016. We nudge up our FY15 sales estimates by 1.5% to reflect the good H1 performance. Neutral recommendation and FV of EUR79 confirmed.