Adidas, stock market jumps 9% after quarterly figures

Adidas archives past difficulties and opens 2026 with a first quarter of growth. The German sportswear group reported revenues of €6.6 billion, up double-digit (+14%) at constant exchange rates, while operating profit reached €705 million (+16%) and net income from continuing operations stood at €484 million (+11%). The stock jumped on the stock exchange in Frankfurt, closing the session with a 9% gain, in the belief that this start of the year confirms the strengthening of the brand and the German group's ability to sustain high margins despite a still uncertain macroeconomic environment.

On the geographical front, revenue growth was widespread in all major regions. North America posted +12%, Greater China +17%, Japan/South Korea +23% and Latin America +26%, all at constant exchange rates. In emerging markets, revenues increased by 10%, despite the decline in several Middle Eastern countries due to geopolitical tensions. Growth in Europe was more moderate (+6%), where the group continues to adopt a cautious approach to the wholesale channel. However, in all regions, including Europe, the direct-to-consumer (DTC) channel showed double-digit expansion, supported by still solid demand and good sell-out levels.

In terms of distribution channels, the DTC remained the main growth driver, with sales at constant exchange rates up 22%. Within the channel, e-commerce grew by 25% and direct retail by 19%, both supported by double-digit like-for-like increases in concept stores and factory outlets. Adidas continues to favour full-price sales, with positive effects on gross margins. Wholesale posted more moderate growth (+8%), after +18% in 1Q2025, consistent with a more conservative sell-in strategy especially in Europe and North America, in a context of high promotional pressure.

In terms of profitability, the group saw a gross margin of 51.1%, down 1 percentage point year-on-year, penalised by unfavourable currency effects and the impact of US tariffs. These factors more than offset operational improvements related to a more favourable business mix and growth in full-price sales. The impact of external variables was particularly marked in the first half of the year.

On the cost side, other operating expenses increased by 3% to EUR 2.68 billion, but fell to 40.7% of revenue due to operating leverage. Marketing expenses amounted to EUR 756m (+1%), or 11.5% of revenue, reflecting a different timing of investments: after the global 'You Got This' campaign launched in Q1 2025, the focus in 2026 progressively shifts to the FIFA World Cup 2026. Initiatives in the quarter included support for new product launches - including away uniforms for the competition, Hyperboost Edge in running and Adizero Dropset Elite in training - as well as strengthening brand visibility through the Superstar campaign and media exposure linked to Bad Bunny's performance at the Super Bowl.