Adidas has reaffirmed its guidance for the full year, highlighting “elevated uncertainty” due to the costs of US import tariffs and the potential knock-on effects on consumer demand should tariffs lead to inflation.
The company says it saw the first negative impact of tariffs in the second quarter of 2025, when it totaled in the “double-digit” millions of euros, and warned that tariffs could raise the cost of goods sold in the US by up to €200 million in the remainder of the year.
| Adidas - Income | |||
|---|---|---|---|
| 2025 | 2024 | Change | |
| Q2, ended June 30 (€ million) | |||
| Net sales | 5,952 | 5,822 | 2.2% |
| Cost of sales | 2,875 | 2,863 | 0.4% |
| Gross profit | 3,077 | 2,959 | 4.0% |
| Royalty and commission income | 18 | 19 | -5.3% |
| Other operating income | 1 | 6 | -83.3% |
| Other operating expenses | 2,549 | 2,637 | -3.3% |
| Operating profit | 546 | 346 | 57.8% |
| Financial income | 9 | 20 | -55.0% |
| Financial expense | 67 | 62 | 8.1% |
| Pre-tax | 488 | 304 | 60.5% |
| Tax | 114 | 93 | 22.6% |
| Net income from continuing operations | 375 | 211 | 77.7% |
| Gain from dicontinued operations, net of tax | 6 | -6 | – |
| Net income | 381 | 206 | 85.0% |
| Diluted EPS from continuing operations | 2.03 | 1.09 | 86.2% |
| Diluted EPS from continuing and discontinued operations | 2.07 | 1.06 | 95.3% |
| H1, ended June 30 (€ million) | |||
| Net sales | 12,105 | 11,280 | 7.3% |
| Cost of sales | 5,823 | 5,525 | 5.4% |
| Gross profit | 6,282 | 5,755 | 9.2% |
| Royalty and commission income | 37 | 35 | 5.7% |
| Other operating income | 2 | 8 | -75.0% |
| Other operating expenses | 5,165 | 5,115 | 1.0% |
| Operating profit | 1,156 | 682 | 69.5% |
| Financial income | 43 | 43 | 0.0% |
| Financial expense | 126 | 177 | -28.8% |
| Pre-tax | 1,073 | 549 | 95.4% |
| Tax | 262 | 166 | 57.8% |
| Net income from continuing operations | 811 | 382 | 112.3% |
| Gain from dicontinued operations, net of tax | -1 | -7 | -85.7% |
| Net income | 810 | 376 | 115.4% |
| Diluted EPS from continuing operations | 4.47 | 2.05 | 118.0% |
| Diluted EPS from continuing and discontinued operations | 4.47 | 2.02 | 121.3% |
| Source: Adidas AG | |||
For the full year, Adidas continues to anticipate that currency-neutral sales will grow at a high-single-digit rate, with an operating profit of €1.7 to €1.8 billion, well below a €2.085 billion analyst consensus provided by the company.
Bjørn Gulden: “Normally we would be bullish in our outlook”
“The year has started great for us and normally we would now be very bullish in our outlook for the full year,” explained Bjørn Gulden, CEO. “We feel the volatility and uncertainty in the world does not make this prudent.”
For the second quarter, ended on June 30, Adidas reports sales of €5.952 billion, up by 2.2 percent from the year earlier and below an analyst consensus of about €6.15 billion. The top-line figure included a negative foreign exchange impact of about €300 million from the weaker dollar and Chinese yuan.
Adidas sales increased by 12 percent on a currency-neutral basis, or by 8 percent with Yeezy sales included in the prior year. Having completed the sale of the remaining Yeezy inventory at the end of 2024, Adidas notes that results for the latest second quarter did not include any Yeezy revenues.
Operating income increased by 58 percent
The company’s second-quarter gross margin widened by 0.9 percentage points to 51.7 percent, as decreased discounting and lower product and freight costs more than offset the impact of currency headwinds and unfavorable effects from its business mix and the initial impact of US import tariffs.
Operating income increased by 58 percent to €546 million, above an analyst consensus of €523 million, as the operating margin improved by 3.2 percentage points to 9.2 percent. Net profit from continuing operations jumped by 78 percent to €375 million, also topping a €366 million consensus.
On a currency-neutral basis, Adidas posted single-digit growth in its biggest markets: Europe, the US and China. Currency-neutral sales instead rose by a more robust 22.2 percent in Latin America, 12.6 percent in Japan and South Korea, and 11.9 percent in emerging markets.
| Adidas - Sales | ||||
|---|---|---|---|---|
| 2025 | 2024 | Change | Change (currency neutral) | |
| Q2, ended June 30 (€ million) | ||||
| Europe | 1,997 | 1,912 | 4.4% | 4.1% |
| North America | 1,339 | 1,302 | 2.8% | 8.1% |
| Greater China | 798 | 822 | -2.9% | 2.1% |
| Emerging markets | 762 | 749 | 1.7% | 11.9% |
| Latin America | 673 | 673 | 0.0% | 22.2% |
| Japan / South Korea | 355 | 321 | 10.6% | 12.6% |
| Other | 14 | 20 | -30.0% | -30.6% |
| H1, ended June 30 (€ million) | ||||
| Europe | 3,983 | 3,645 | 9.3% | 8.8% |
| North America | 2,523 | 2,424 | 4.1% | 5.6% |
| Greater China | 1,827 | 1,719 | 6.3% | 7.8% |
| Emerging markets | 1,632 | 1,461 | 11.7% | 17.7% |
| Latin America | 1,371 | 1,287 | 6.5% | 24.2% |
| Japan / South Korea | 729 | 660 | 10.5% | 12.7% |
| Other | 35 | 49 | -28.6% | -29.2% |
| Source: Adidas AG | ||||
Footwear sales in the quarter amounted to €3.476 billion, 3 percent higher at constant-currency rates. They were 9 percent higher on a constant-currency basis with Yeezy sales excluded from the prior year. In footwear, the Running, Training, Sportswear and Performance Basketball categories all posted double-digit growth.
Adidas sees upside potential
Apparel sales increased by 17 percent at constant-currency rates to €2.029 billion, while accessory and gear sales grew 7 percent at constant rates to €447 million.
By sales channel, wholesale sales amounted to €3.604 billion in the quarter, up by a currency-neutral 11 percent. Direct-to-consumer (DTC) sales amounted to €2.338 billion, 3 percent higher at constant-currency rates, reflecting an 8 percent increase at own-stores and a 3 percent decline in e-commerce.
Adidas opened 50 stores and closed 41 in the second quarter, with its total concept store count rising by eight to 844 in the quarter and the number of factory outlets growing by one to 1,098.
As the company highlights market uncertainty from both the direct and indirect impacts of tariffs, it also points to possible upside potential “based on the strong results for the first half of the year, continued brand momentum, and the strong order book for the remainder of 2025.”
