Adidas, the renowned sportswear brand, recently announced a significant increase in their revenue for the third quarter. This surge was widespread, affecting all markets, categories, and channels.
For the third quarter, the company’s total revenue skyrocketed to approximately €6.63 billion (US$7.7 billion), marking the highest third-quarter revenue ever for the company. This was primarily due to a 12% growth in the Adidas brand.
The company pointed out that the impressive third-quarter results did not include revenue from Yeezy. This is because Adidas had successfully sold off the remainder of their Yeezy inventory at the end of the previous year.
The gross margin for Adidas saw a slight but notable increase, improving by 0.5 percentage points to 51.8%. Additionally, the operating profit rose to €736 million, marking an increase from the €598 million recorded during the same period the previous year.
Adidas’ CEO, Bjørn Gulden, expressed his pride in the company’s accomplishments during the third quarter. He mentioned, “Our teams delivered record revenues during a period of global volatility marked by tariff hikes in the US and widespread uncertainty among retailers and consumers. Despite these challenges, our brand and products continue to resonate well with consumers.”
In light of these positive developments in the third quarter, Adidas has revised its full-year operating profit forecast. The company now expects its operating profit to increase to approximately €2 billion. This is a significant upgrade from their previous projection, which ranged between €1.7 billion and €1.8 billion.
The improved forecast is a testament to the continuing momentum of the Adidas brand. It also acknowledges the company’s better-than-anticipated business performance and its successful efforts to partially offset the additional costs incurred due to increased US tariffs.
As far as revenue is concerned, Adidas maintains its expectation of achieving double-digit currency-neutral growth for the year.
What was Adidas’ total revenue for the third quarter?
Adidas reported a total third-quarter revenue of approximately €6.63 billion (US$7.7 billion), marking its highest ever for the quarter.
What are the factors attributed to Adidas’ improved full-year operating profit outlook?
The revised outlook reflects the continuous momentum of the Adidas brand, better-than-expected business performance, and the company’s successful efforts to partially offset additional costs due to increased US tariffs.
What is Adidas’ expectation for revenue growth for the year?
Adidas continues to expect double-digit currency-neutral growth for the year’s revenue.
