Adidas: On Track with Record Sales and a New CFO
We kick off our journey with the current star performer from Herzogenaurach. Adidas demonstrated operational strength in the second quarter of 2026 and delivered top-notch results. Currency-adjusted revenue climbed by 14%. This marks a new record for this quarter. But as we all know, where there is light, there is also shadow. The massive and costly advertising campaigns surrounding this year’s major sporting events have put noticeable pressure on the group’s margins. Growth costs money, after all, and even the brand with the three stripes cannot escape that reality.
Also of interest is the reshuffling of personnel in the executive suite. Birgit Kretschmer is taking the helm as the new CFO, replacing Harm Ohlmeyer. This change is intended to bring a breath of fresh air to the company’s financial management. This transition is accompanied by a stock buyback program worth billions, through which management aims to demonstrate immense confidence in its own strategy.
The good news is that most analysts are certainly rewarding this approach. Although the stock has recently suffered price losses and settled at a level of just under EUR 163–164, experts see the average price target at over EUR 205. This corresponds to a theoretical upside potential of a good 25%. From a technical analysis perspective, there are also signs of a bottom forming in the range above EUR 155–160. All of this is also viewed positively, as a “golden cross” recently formed when the 50-day SMA crossed above the 200-day SMA. Currently, the share price is holding steady above the key 200-day moving average.
Puma: Tough Environment, but Strong Cash Flow
Just a few streets away in Herzogenaurach, the outlook is slightly bleaker. Puma is currently facing significantly more headwinds than its major local rival. In the second quarter of 2026, the company reported a currency-adjusted revenue decline of 9.4% to just over EUR 1.69 billion. Management attributes this dip to targeted internal restructuring measures as well as generally weaker demand in Western markets. However, this had already been largely communicated to the market and therefore does not come as a huge negative surprise. After all, there is often a strategy of “healthy downsizing.”
Despite the declining revenue, there are also clear bright spots. Puma has worked hard to improve its profitability. The operating loss on an EBIT basis was significantly halved compared to the same period last year, from EUR 109.1 million to EUR 53.1 million. The gross margin rose to 48.0%. Liquidity also delivered a genuine positive surprise. The company’s free cash flow made a massive jump to EUR 328.8 million. Strategically, Puma is pushing direct sales to customers, with the direct-to-consumer (DTC) ratio rising to 35.2%. The full-year forecast remains intact despite all the hurdles. The road back to the top will be rocky, but the fundamentals are visibly stabilizing. From a technical analysis perspective, once the stock breaks through the EUR 30 mark, it could then target the EUR 40–45 range.
Desert Gold: Quietly Poised for a Big Leap?
While millions are being spent in Herzogenaurach on marketing budgets and restructuring, the focus on the African continent is on tangible gold discoveries and gold reserves in the ground. Desert Gold Ventures Inc. positions itself as an up-and-coming gold explorer and aspiring gold producer in West Africa, with a clear focus on Mali and Côte d’Ivoire. The company’s flagship project is the fully permitted SMSZ project in Mali, which covers an area of 440 km². It is located in the immediate vicinity of established mining giants, which could naturally spark takeover speculation.
The fundamental data is generally impressive; according to the preliminary economic assessment (PEA), the project has a net present value (NPV) after taxes of USD 61 million and an internal rate of return (IRR) of 57% at a gold price of USD 2,850 per ounce. Resources total 336,800 ounces in the “Measured and Indicated” category, plus an additional 879,900 ounces in the “Inferred” category.
Production is set to begin soon at this modest-scale but capital-efficient heap leaching operation.
It is also particularly interesting to combine the news from earlier this spring, specifically from April 27 and May 5, with current market analyses. The published news regarding the PEA underscores the company’s solid transition from explorer to producer. Analysts at GBC have long recognized the enormous potential and are setting price targets of EUR 0.59 and CAD 0.95, respectively. That is a huge figure, considering the stock is currently trading at a very modest CAD 0.105.
From a technical analysis perspective, things also appear to be building up — potentially in a positive direction. The share price has been consolidating within a distinct wedge pattern (see the chart below). A breakout from this pattern could be imminent. If the stock manages to sustainably break above CAD 0.15, significant upside potential could open up. The path toward CAD 0.30 would then be clear from a technical perspective, and in the medium term, even the ambitious GBC price target would come within reach. This is certainly a long way off, but as we all know, anything is possible on the stock market. A strong catalyst for such a dynamic development could simply be the official confirmation that production has actually begun. That would finally transform the company from a pure speculative play into a cash-flow-generating company.
Looking at these three stocks, Adidas demonstrates that even in challenging times, the right strategy can deliver record revenues. However, keeping costs under control remains crucial.
Puma is going through a tough but urgently needed reset phase that is already bearing its first fruits in terms of cash flow and margin improvement. Here, too, there is upside potential.
Desert Gold, on the other hand, operates in a significantly smaller league. This resource stock also offers a completely different risk-reward profile. Uninfluenced by consumer sentiment, management is working to establish gold production in a region extremely rich in natural resources. Backed by strong analyst targets, a solid PEA, and an extremely exciting chart pattern poised for a breakout, the stock currently offers an extremely attractive entry point and a good addition to a portfolio. If the plans in Mali pan out, this small explorer could soon significantly outperform the established sports giant in terms of percentage returns.
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