Wrapping up another quarter of growth well above industry averages and seeing one it’s the brand’s ambassadors break the sub-two-hour marathon this past weekend, Adidas’ CEO Bjørn Gulden told analysts he expects Adidas to deliver high-single growth in 2026, 2027 and 2027 with stronger gains in profitability.

The high-single digit growth would amount to adding  €2 billion growth annually and follow revenue gains on a currency-neutral basis of 13 percent in 2025 and 12 percent in 2024.

Asked by an analyst what gives him confidence that Adidas will be able to deliver strong market share gains for five years in a row,  Gulden said he sees the “potential is of course there is a world that stabilizes a little bit,” with U.S. tariffs and the Middle East conflict both pressuring otherwise strong results in its first quarter.

However, he cited a strong product pipeline across Adidas’ product divisions and categories, improved retailer relationships, its marketing partnerships across sports and lifestyle, and localized go-to-market approach continuing to support Adidas’  brand momentum.

“We see growth potential both in the performance side, apparel and footwear, and the same in lifestyle in all the markets we talk about,” said Gulden. “ There are certain markets that we think will grow much faster than maybe you think. Then there are markets where we see that we can take more share, maybe quicker by doing some changes. Again, you are never guaranteed to get a  €2 billion growth every year, this is a bottom-up approach from the markets.”

He also believes that while some market watchers are predicting a shift back towards more formal footwear, demand for sneakers will remain resilient due in large part for a strong appetited for comfort.

“With many Western population having an older consumer that wants very comfortable footwear, which means cushioning, which mean breathability, which means comfort in general, I do think that our industry actually has even a bigger potential targeting that,” said Gulden.

The bullish outlook comes as Adidas reported currency-neutral revenues jumped 14 percent in the first quarter to €6,592 million ($7.7 bn), well above the 9 percent growth estimate by analysts. In euro terms, sales were up 7.1 percent.

Operating profit rose 15.6 percent to €705 million, beating consensus of €647 million.

Gulden said the strong top-line growth comes despite heavy discounting in footwear retail, especially around lifestyle offerings, as well as moves to bring in World Cup inventory in early to avoid supply chain disruption, but also overall healthy demand for Adidas product across categories and regions. He said, “I think it proves that the product we have in the marketplace is in demand of the consumer.”

First-Quarter Performance by Regiondidas CEO Bjørn Gulden
“By region, most regions grew at double-digits double-digit rates, including North America (+12 percent), Greater China (+17 percent), Japan/South Korea (+23 percent), Latin America (+26 percent). In Emerging Markets, revenues increased 10 percent, despite several countries in the Middle East posting sales declines due to the conflict in the region. Revenues in Europe grew 6 percent, as the company continued its conservative approach to wholesale sell-in. All markets, including Europe, posted double-digit growth in DTC, reflecting continued strong demand and sell-out trends for adidas products.

Gulden said Adidas was pleased with Adidas’ performance in the U.S. market. He described the U.S. as a “nervous market when it gets to consumer demand. Oil prices being high, and of course, also a lot of discounting. We are very happy with that number. You know, that we admit that the U.S. is for us, of course, the biggest opportunity over a long period because we are so far behind our competitor.”

In other regions, he noted that Europe was facing tough comparisons against a 20 percent growth last year, but also cited promotional pressures in the lifestyle category. He said, “The market is over-inventoried, a lot of discounts, it’s hard right now to grow on full price. Great growth on apparel and also good growth in performance.”

The 17 percent growth in China stand in contrast to Nike, which saw currency-neutral sales in the region decline 10 percent in its most recent quarter. Gulden said of China, “Great momentum, great energy, great sell-through.”

DTC Drives Q1 Channel Performance In Q1
On a currency-neutral basis, direct-to-consumer (DTC) channel climbed 22 percent in the first quarter, driven by double-digit DTC growth in all markets, reflecting sustained strong consumer demand across the brand’s diversified product portfolio. E-commerce revenues increased 25 percent, while own retail revenues were up 19 percent, driven by double-digit like-for-like growth in both concept stores and factory outlets. Across DTC, Adidas sustained its full‑price sales focus, leading to higher gross margins in both e‑commerce and own retail.

Wholesale revenues advanced 8 percent on top of 18 percent growth in the prior-year quarter. The company continued its conservative wholesale sell-in approach, especially in Europe and North America, given the uncertain consumer environment and heightened promotional activity in the marketplace.

Gulden said the channel results were in line with expectations, with Europe and America wholesale both challenged by being “over-inventoried” and Adidas emphasizing full-price selling. Gulden said, “We would love again to have a less volatile wholesale business.”

Apparel Paces Q1 Product Category Growth
Among categories, footwear grew only 4 percent, reflecting tough comparisons  on top of more than 20 percent growth in the prior-year quarter and despite a continued focus on full-price business within a promotional marketplace. Said Gulden, ‘You might think that the 4 percent is weak. I would say it’s not. It tells you that footwear right now is in process of being more discounted, and especially in the lifestyle area. There are lack of newness and lack of energy, and the stores, especially in Europe and America, are merchandised with a lot of discounts, so it’s difficult to get the energy that we’ve had before.”

Adidas said it achieved double-digit footwear increases in several performance categories, led by Running and Training, alongside double-digit growth in many lifestyle footwear franchises.

Apparel revenues surged 31 percent on the back of differentiated and locally relevant collections, as Adidas continued to expand its brand momentum and market share gains across product divisions. Growth in apparel was driven by double-digit increases in Football, Running, Training, Motorsport, and Originals. Accessories grew 13 percent during the quarter.

Performance Revenues Vaults 29 Percent
Performance revenues rose 29 percent on a currency-neutral basis in the first quarter. The gains were led by Motorsport, up 79 percent; Global Football, 49 percent; Running, 28 percent; Training, 12 percent, and Golf, 8 percent. U.S. sports, primarily U.S. football, was up 2 percent while basketball was down 20 percent.

Gulden said Global Football, as expected, benefited from a successful FIFA World Cup 2026 away jersey launch in March, continued strong demand for the event’s home kits and the official match ball, and a strong response to retro‑inspired Football apparel range.  The category’s growth also benefited from being “very good in supply” as inventory supporting the World Cup was brought in early to avoid potential supply chain disruption.

Running is seeing “great momentum,” due in part to the strong appeal of the Adizero franchise that was showcased in the record-breaking times at the London Marathon, updates to the Evo SL range, and broader strength in running participation. Said Gulden, “As you know, there is a globally running boom.”

Motorsport’s growth benefited from the signing of the Audi race team to join the Mercedes team. Gulden also called out the “very positive number for us in the golf market that has been stagnated.”

The one negative performance category was basketball. Gulden said, “We have to remember that Q1 is a small basketball quarter. Your also know that we have told you that we need time to turn that business to make it better. You also probably know that basketball culture right now, especially in the lifestyle area, is not hot in demand.”

Lifestyle Growth Impacted By Footwear Discounting
Lifestyle revenues rose 6 percent during the quarter, driven by gains of 7 percent in Originals and 5 percent in Sportswear.  Said Gulden, “We clearly see that lifestyle footwear has a more difficult time, and I explained it with probably a lack of newness, too much inventory of certain brands and high discounting.”

He still sees the lifestyle is experiencing a “boom” in apparel due to new materials and silhouettes and believes with the Terrace franchise and running lifestyle product that Adidas has “the best lifestyle offer out there.” The Samba Jane, blending the familiar Samba look with a dressy Mary Jane aesthetic, as well as ballerina constructions, and additional versions of the Tokyo and Japan franchises drove strong growth across Adidas’ low-profile offering. Gulden said of lifestyle footwear, “We still have great sell-throughs, and we feel that we have the pipeline what we need, but we also then have to manage inventory according to what we see in the market and try not to jump on the discount wagon. That’s why the growth rate probably is a little bit limited by that.”

Outlook
Adidas reiterated its outlook for the year given the “macroeconomic challenges and elevated uncertainty” in the marketplace. Adidas continues to expect currency-neutral sales to increase at a high-single-digit rate in 2026, reflecting growth of around €2.0 billion in absolute terms. Operating profit to increase to around €2.3 billion, up from €2.06 billion, in 2025. The full-year impact of higher U.S. tariffs and unfavorable of currency developments are expected to weigh on operating profit by around €400 million.

Image courtesy Adidas