adidas AGADDDF +2.86%86 Gross Margin % is 51.11% as of Mar. 2026, which is 1% above its 10-year median of 50.58. GuruFocus rates ADDDF with a GF Score™ of 86/100 and a GF Value™ of $239.20 (Modestly Undervalued). Among 1,028 Manufacturing - Apparel & Accessories companies, adidas AG ranks better than 78.11% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. adidas AG's Gross Profit for the
three
months ended in Mar. 2026 was $3,895 Mil. adidas AG's Revenue for the
three
months ended in Mar. 2026 was $7,621 Mil. Therefore, adidas AG's Gross Margin % for the quarter that ended in Mar. 2026 was 51.11%.
The historical rank and industry rank for adidas AG's Gross Margin % or its related term are showing as below:
ADDDF'
s Gross Margin % Range Over the Past 10 Years
Min: 47.28 Med: 50.58 Max: 52
Current: 51.36
During the past 13 years, the highestGross Margin % of adidas AG was 52.00%. The lowest was 47.28%. And the median was 50.58%.
adidas AG had a gross margin of 51.11% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for adidas AG was 0.50% per year.
adidas AG (OTCPK:ADDDF) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
adidas AG had a gross margin of 51.11% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
adidas AG Gross Margin % Related Terms
adidas AG Gross Margin % Historical Data
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The historical data trend for adidas AG's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ADDDF vs NKE, DECK, ONON: Gross Margin % Comparison
For the Footwear & Accessories subindustry, adidas AG's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
adidas AG Gross Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, adidas AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where adidas AG's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
adidas AG (ADDDF) has a Gross Margin % of 51.11% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on adidas AG and its competitors. This is near median its historical median of 50.58. Over the past decade, adidas AG's Gross Margin % has ranged from 47.28 to 52.00. According to the industry distribution chart, adidas AG ranks #225 out of 1028 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 21.9%.
Is adidas AG's Gross Margin % too high?
adidas AG's current Gross Margin % of 51.11% is near median its 10-year median of 50.58. Over the past 10 years, this metric has ranged from a low of 47.28 to a high of 52.00. The Manufacturing - Apparel & Accessories industry median Gross Margin % is 28.39. adidas AG's value of 51.11% is 80% above this industry median. Based on the distribution chart, adidas AG ranks #225 out of 1028 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, adidas AG has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does adidas AG's Gross Margin % compare to NKE and DECK?
According to the Manufacturing - Apparel & Accessories industry distribution chart, adidas AG ranks #225 out of 1028 companies for Gross Margin %. This places adidas AG in the top 22% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 28.39. adidas AG's value of 51.11% is 80% above this benchmark. Historically, adidas AG's own Gross Margin % has ranged from 47.28 to 52.00 over the past decade. While the company's 10-year median is 50.58 vs. the industry median of 28.39, adidas AG has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Manufacturing - Apparel & Accessories company?
The median Gross Margin % among Manufacturing - Apparel & Accessories companies is 28.39, based on 1,028 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. adidas AG's current Gross Margin % of 51.11% is 80% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on adidas AG and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Gross Margin % is 28.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. adidas AG's current Gross Margin % is 51.11%, which is near median its own 10-year median of 50.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is adidas AG stock overvalued right now?
Based on GuruFocus' analysis, adidas AG (ADDDF) is currently considered Modestly Undervalued. The stock's GF Value™ is $239.20, compared to a current price of $196.88 — trading 17.7% below its estimated fair value. The current Gross Margin % is 51.11%, which is near median its 10-year median of 50.58 and 80% above the Manufacturing - Apparel & Accessories industry median of 28.39. adidas AG's overall GF Score™ is 86/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For adidas AG (ADDDF), the current Gross Margin % is 51.11% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is adidas AG (ADDDF) Overvalued in 2026?
Based on GuruFocus' analysis, adidas AG stock appears to be undervalued.
The current stock price of $196.88 is trading 17.7% below its estimated GF Value™ of $239.20.
GuruFocus considers adidas AG to be Modestly Undervalued.
Key valuation signals for ADDDF:
Gross Margin %: 51.11% (near median its 10-year median of 50.58)
GF Value™: $239.20 vs. price of $196.88 (17.7% below fair value)
Industry Position: 80% above the Manufacturing - Apparel & Accessories median (#225 of 1028)
No single metric tells the full story. See the ADDDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adidas designs, develops, produces, and markets athletic and leisure apparel, footwear, accessories, and sports equipment. Under its eponymous brand, it produces apparel for competitive athletics, casual activewear, and casual fashion. Adidas sells its products in more than 160 countries through about 2,000 owned retail stores, 15,000 Adidas-branded franchise stores (including about 8,000 in China), 150,000 wholesale doors, and an owned e-commerce site that is available in 67 countries. The company was founded in 1949 in Germany.
86GF Score
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