Why investors 'punished' Adidas after the World Cup

Shares of Adidas plunged by 19% in Frankfurt following a strategic marketing push for the 2026 World Cup that significantly impacted operating profits. While the company reported robust sales of €1.5 billion, exceeding expectations, the high costs of advertising campaigns and early product distribution led investors to sell. CEO Bjørn Gulden defended the strategy as a long-term investment, despite the market's negative reaction, which was further compounded by the surprise departure of CFO Harm Ohlmeyer.