Adidas raised its earnings and sales outlook for the year while reporting preliminary results for the third quarter showing currency-neutral revenues for the Adidas brand jumped 12 percent. The improved profitability outlook reflects continued brand momentum, the better-than-expected business performance as well as successful efforts to partly mitigate the additional costs resulting from increased U.S. tariffs.
The 12 percent currency-neutral gain was driven by broad-based double-digit growth across markets, product divisions, categories, and channels.
Having completed the sale of the remaining Yeezy inventory at the end of last year, the company’s results for the third quarter of 2025 do not include any Yeezy contribution. Including ~€200 million of Yeezy sales in the prior-year third quarter, currency-neutral revenues increased 8 percent year-over-year (y/y). In euro terms, revenues reached €6.63 billion in the quarter against €6.44 billion in Q3 last year, up 3.0 percent.
The company’s gross margin improved 0.5 percentage points to 51.8 percent of net sales in the quarter, compared to 51.3 percent in the year-ago quarter, despite the negative impacts from unfavorable currency developments and higher tariffs. Operating profit improved 23.1 percent y/y to €736 million from €598 million in Q3 2024. The third-quarter operating margin reached 11.1 percent (2024: 9.3 percent).
For the full year, the company continues to expect double-digit currency-neutral revenue growth for the Adidas brand. Including ~€650 million in Yeezy sales in 2024, currency-neutral revenues are now expected to increase by around 9 percent, compared to prior guidance for high-single-digit growth. The company’s operating profit is now expected to increase to a level of around €2.0 billion, up from the prior forecast for a range between €1.7 billion and €1.8 billion.
Adidas CEO Bjørn Gulden said, “I am extremely proud of what our teams achieved in the third quarter with actually record revenues. 12 percent growth for the Adidas brand leading to total revenue of €6.63 billion is the highest we have ever achieved as a company in a quarter.
“The environment is volatile with the tariff increases in the US and a lot of uncertainty among both retailers and consumers around the world, but our teams work hard, and our brand and our products resonate well with consumers.
“Given the positive development in Q3, we narrow our top-line guidance and raise our full-year EBIT outlook from between €1.7 billion and €1.8 billion to around €2.0 billion. 2025 is a success for us already. I am especially happy to see that our performance business is growing strongly across categories and in all regions. The focus is now on transitioning well into 2026, which will be another exciting sports year with the Winter Olympics right at the beginning, the biggest Football World Cup ever, and many more great events to look forward to.
“Adidas is a sports company that connects sports and street culture. We sell performance, comfort, and lifestyle. We see global demand for all these segments continue to grow. That is why we look positive into the future!”
Image courtesy Adidas Group
