TLDR
- First-quarter operating profit jumped 15.6% to €705 million, surpassing the €647 million consensus forecast
- Sales climbed 14% on a currency-neutral basis, significantly exceeding the ~9% analyst projection
- Greater China revenue expanded 17% in constant currency; Latin America posted 26% growth
- Gross margin declined to 51.1% from 52.1%, pressured by foreign exchange and tariff headwinds in the U.S.
- 2026 full-year outlook maintained at roughly €2.3 billion operating profit amid tariff and currency volatility
Adidas delivered an impressive first-quarter performance, with operating profit surging 15.6% year-over-year to reach €705 million. The figure exceeded the analyst consensus projection of €647 million by approximately €60 million, and outpaced Bernstein’s €656 million forecast.
Revenue totaled €6.6 billion, representing a 7% increase in reported euro figures. When adjusted for currency fluctuations, sales expanded 14% — significantly outperforming the roughly 9% consensus estimate.
The sportswear giant posted earnings per share of €2.70, exceeding the consensus estimate of €2.53.
CEO Bjørn Gulden characterized the quarterly performance as “very strong in the current environment,” highlighting robust consumer demand spanning multiple product categories and geographic markets.
Key Growth Drivers Behind the Quarter
The performance segment emerged as the primary growth engine, expanding 29% on a currency-neutral basis during Q1, accelerating from 27% growth in the fourth quarter of 2025. Football, running, and training categories all delivered solid contributions.
Apparel represented the fastest-expanding product category, soaring 31% currency-neutral to reach €2.4 billion in revenue. Footwear posted 4% growth, building on top of a robust 17% increase during the prior-year period.
CFO Harm Ohlmeyer highlighted the company’s strategic decision to accelerate World Cup merchandise inventory as a significant factor enabling the quarter’s 14% growth trajectory.
The running segment received additional momentum from the London Marathon, where Kenyan athlete Sabastian Sawe achieved a historic milestone by becoming the first runner to complete an official marathon in under two hours — sporting Adidas footwear.
Direct-to-consumer channels expanded 22% in constant currency. Digital commerce surged 25%, while company-owned retail locations climbed 19%. Wholesale distribution grew at a comparatively moderate 8% pace.
Geographic Performance Analysis
Latin America emerged as the top-performing region with exceptional 26% currency-neutral expansion. Japan and South Korea registered 23% growth, while Greater China delivered 17% — substantially exceeding Bernstein’s 9% projection by 800 basis points.
North America returned to double-digit expansion territory with 12% constant-currency growth, although foreign exchange headwinds reduced this to merely 1% when measured in euro terms.
Europe, representing the company’s largest revenue market at €2.09 billion, posted 6% growth. Gulden acknowledged that certain Middle Eastern markets experienced sales declines attributed to ongoing conflict involving Iran.
Gross margin contracted to 51.1%, down from 52.1% in the comparable year-ago period. Currency volatility and elevated tariff expenses in the United States more than neutralized benefits from improved full-price selling dynamics and favorable product mix shifts.
The athletic apparel maker estimated that the combined impact of tariffs and currency fluctuations will diminish full-year 2026 operating profit by approximately €400 million, with the heaviest concentration of this pressure occurring during the first half.
Despite the exceptional first-quarter results, Adidas maintained its existing full-year guidance without revision. Management continues to project high-single-digit currency-neutral revenue growth alongside operating profit of approximately €2.3 billion for 2026 — roughly 5% beneath current analyst consensus expectations.
The unchanged outlook suggests a considerable deceleration throughout the remainder of the fiscal year, with second through fourth quarter operating profit anticipated to run substantially below prevailing market estimates.
The company also unveiled a share repurchase program valued at up to €1 billion for execution during 2026.
Gulden identified increasing promotional activity within the lifestyle footwear segment as an area requiring attention, emphasizing that carefully managing product distribution to retail partners remains critical for preserving pricing power and margins.
