Adidas, brake on 2026 profits and sales rain

Disappointing profit expectations for 2026. So, in an already difficult climate due to the collapse of the stock exchanges due to the war, a shower of sales was added for Adidas, which, at the opening, on the Frankfurt Stock Exchange, recorded a drop of 6.8% before closing, in partial recovery, at -3.6%. Disappointing the market was the profit forecast for this year, which came in lower than expected, also in light of a higher impact of tariffs in the US. In fact, the sportswear giant expects an operating profit of around EUR 2.3 billion for 2026, including an expected negative impact of EUR 400 million on exchange rates and tariffs. Prospects that disappoint investors as they also imply an operating margin below the medium-term target of 10% set by the company.

Meanwhile, on 2025, Adidas announced a group net profit of €1.34 billion last year, up 75% year-on-year, despite a difficult environment, driven in particular by the success of its retro shoes. For this year, Adidas is aiming for a revenue increase of EUR 2 billion, following the previously announced record of EUR 24.8 billion in 2025. The operating result is expected to reach EUR 2.3 billion, including an expected negative impact of EUR 400 million on exchange rates and tariffs. Operating profit implying a margin of 8.5%-8.8%, below the target of 10% set.

Norwegian Bjørn Gulden has had his term as CEO of Adidas extended until 2030. The supervisory board of the German sportswear company praised him for 'enabling the successful turnaround of Adidas' since he took office in 2023. Precisely in 2023, the Group had made a loss, but has since recovered. Gulden took over at the very beginning of 2023 with the task of stabilising Adidas. Adidas also proposed Egyptian billionaire Nassef Sawiris as the new chairman to replace Thomas Rabe, who faced criticism from shareholders for holding too many other management roles.

Overall, Adidas said it expects sales, net of currency effects, to continue to grow at a high single-digit rate in 2027 and 2028. Sales in North America - Adidas' second-largest market in terms of sales - grew by 10 per cent in currency terms last year, but fell by 1 per cent in euro terms, dragged down by the weakening dollar. Gulden said in a note that Adidas had managed to keep discounts under control and sell 'the right product in the right quantity' in its markets.

Management proposed a 40% increase in the dividend to EUR 2.80 per share for 2025. In January, it had announced a share buyback of up to EUR 1 billion at the same time as the preliminary results for 2025.