Adidas reports record revenue of 7 billion euros
Adidas has reported record revenue of €7.25 billion in the third quarter, with a 9% increase in sales. The company’s operating profit also rose by 37% to over €1 billion, the highest level ever recorded in a single quarter.
The German sportswear giant confirmed its raised guidance for the full year, with expected sales growth of 9-10% at constant currencies and an operating profit of around €2.5 billion.
The company’s financial performance was strong, with a gross margin increase of 2.5 percentage points to 54.3%, and an operating margin of 13.9%, an improvement of 2.8 percentage points. Net income from continuing operations rose by 48% to €711 million, or €4.06 per share.
The results were also influenced by approximately €200 million in refunds related to US tariffs, as well as full-price sales and a favorable channel mix. This combination of factors contributed to the company’s strong financial performance.
In terms of products, apparel sales grew by 19% at constant currencies, while footwear sales remained stable. The segment continues to be affected by high inventory levels and strong promotions in the lifestyle sector.
As a result, Adidas maintained a cautious approach to the wholesale channel, while direct-to-consumer sales increased by 17%, with e-commerce growing by 18%. Wholesale sales, on the other hand, rose by 2%. They focused on direct-to-consumer sales, which drove growth.
Geographically, sales increased by double digits in almost all regions, with China up 13%, North America up 12%, Latin America up 16%, and Japan and South Korea up 19%. Emerging markets also saw a 15% increase. It was a strong quarter for the company globally.
However, sales in Europe declined by 4%, partly due to the migration of the SAP IT system, which led to some delivery delays in the fourth quarter. This decline was a notable exception to the company’s overall strong performance.
Operating profit rose by 21% to €2.287 billion, while net income from continuing operations reached €1.593 billion, an increase of 23%. The company’s performance over the first nine months of the year was strong.
