German sportswear giant Adidas continues its rally on the stock market, with shares gaining more than 10 percent year-to-date. This surge has significantly bolstered the wealth of Egypt’s richest man Nassef Sawiris, whose stake in the sportswear and equipment manufacturer has climbed above $2.7 billion, according to the Bloomberg Billionaires Index.
As of today’s close, Adidas shares on the “Deutsche Börse” stock exchange in Frankfurt have risen by 11.46 percent year-to-date, climbing from €182.22 ($197.91) to €203.10 ($220.55). This increase has pushed the company’s market capitalization closer to the $40 billion mark, reflecting strong investor confidence in Adidas’s future performance.
Adidas stake surge elevates Sawiris’ wealth
Nassef Sawiris, who recently announced plans to relocate his family office to Abu Dhabi, holds a seven-percent stake in Adidas. The recent surge in the company’s shares has bolstered Sawiris’ wealth significantly, with his stake now valued at $2.71 billion, up from $2.43 billion at the start of the year.
The increase in Sawiris’ Adidas stake has played a pivotal role in his wealth growth this year, with his net worth rising by $233 million since Jan. 1, reaching $8.64 billion at the time of drafting this report. This makes his Adidas stake his largest asset, solidifying his position as Africa’s fourth-richest individual and the wealthiest in Egypt and the North Africa region.
Adidas thrives, eyes Taylor Swift
The surge in Adidas shares is attributed to investors’ positive reaction to the company’s resilient financial performance in 2023. Despite challenges such as the discontinuation of its partnership with Kanye West’s Yeezy Brand, Adidas exceeded expectations, reporting an operating profit of €268 million ($292 million), surpassing forecasts by nearly €1 billion ($1.08 billion).
Looking ahead, Adidas is actively exploring new collaborations following its separation from Kanye West. During the recent results presentation, Adidas CEO Bjorn Gulden hinted at potential partnerships with pop culture icons, with U.S. music superstar Taylor Swift emerging as a frontrunner. Gulden highlighted Swift’s affinity for Adidas products, indicating a promising avenue for future growth and brand expansion.
