The early elimination of Germany’s national football team from the World Cup has led to a significant drop in Adidas’ stock price, impacting sales of the team’s jerseys.

The early exit of Germany’s national football team from the World Cup has had immediate financial repercussions for Adidas, the sportswear giant responsible for producing the team’s jerseys. Following the elimination, Adidas shares initially fell by over two percent on the DAX index, marking a sharp decline. This comes after the stock had reached its highest level in eight months earlier in the week. The disappointing performance of the German team is expected to negatively impact sales of their national team jerseys, which were previously projected to be a major revenue driver for the company.

Adidas CEO Björn Gulden had earlier described the German team jersey as a ‘bestseller,’ with the company aiming for a direct revenue effect of over one billion euros from World Cup-related sales. However, the team’s early elimination has dampened consumer enthusiasm, particularly for fan merchandise and items branded with World Cup editions. Experts, including Stefan Genth, the chief executive of the German Retail Association (HDE), have noted that the early exit could further weaken consumer sentiment, which is already under pressure. Rolf Bürkl, a consumer researcher at the Nuremberg Institute for Market Decisions, added that the elimination removes a potential boost to Germany’s overall consumption mood.

Despite the initial drop, Adidas shares managed to recover slightly, supported by a positive market environment and an upgraded price target from Citigroup analyst Monique Pollard, who raised the target from 227 to 236 euros. Additionally, Adidas continues to benefit from its sponsorship of 13 other teams in the World Cup, eight of which remain in the tournament, including high-profile teams like Argentina, Spain, and host nation Mexico. Meanwhile, the DAX index overall showed strong recovery, gaining 1.6 percent by early afternoon and surpassing the 25,000-point mark, driven by a rebound in technology stocks in New York and Asia.