Second half action still interesting, but focus is on 2023 Adidas had pre-announced Q2 headlines and adjusted FY guidance at the end of July, so today was really just about testing the conviction levels about the H2 outlook and hearing what management might say about 2023. Management''s quantification of the H2 wholesale order book was particularly helpful and likely shifts the focus almost entirely to 2023. But here the visibility is low. On our revised forecasts the stock trades on CY23 c.20x and we maintain our Neutral rating. Not much learnt from Q2 Besides some regional detail, such as North America beating expectations, not much stood out from Q2 results since the headlines were already known. However, inventories have still not normalised and big drivers of earnings were ''other operating income'' (Reebok) and a tax provision release (EUR c.130m). H2 guidance and 2023 outlook Adidas said that its H2 wholesale order book is up more than 25% across its markets (excluding China), and this underpins its H2 guidance of ''mid-teens'' growth (excluding China). China is likely to decline double-digits, with EUR 400m of product take-backs, but the FIFA World Cup is expected to add EUR 400m of global revenues. There was not much on 2023, besides acknowledging currency pressure, and management remains committed to 2025 targets despite the situation in China. Swooshing forecasts, in line with guidance We now push through FY22 estimate changes reflecting the company''s revised guidance of Net Income EUR of 1.3bn. The bigger debate is how much profits might bounce-back in 2023: our Net Income EUR 1.6bn implies P/E c.20x versus peer Puma (+) on c.22x. Our Adidas target price only falls modestly (to 195p) because we continue to believe in mid-teens long term margins. However, we think Puma has better 2023 visibility, momentum, and we continue to prefer it over Adidas.