Companies

adidas delivers record second-quarter revenue

Aug 3, 2026 Germany

The Germany-based company posted a record revenue of 6.74 billion euros in the second quarter, driven by double-digit sales growth across key markets and strong demand for its FIFA World Cup 2026 and Originals collections

“The business in the quarter was also unbelievably strong: 14% growth in this volatile environment and an operating profit of 574 million euros despite us spending 212 million euros more in marketing underlines the current strength of both the brand and our products and shows what a fantastic job our people around the world are doing”, commented adidas CEO Bjørn Gulden.

Second-Quarter Results

In the second quarter of fiscal 2026, the company’s currency-neutral revenue increased by 14% compared to the same period in the previous fiscal year. Revenue totalled 6.74 billion euros in the quarter, a record high, compared to 5.95 billion euros in the same period a year ago.

On a currency-neutral basis, apparel sales grew by 35% year-on-year in the second quarter, driven by the popularity of the FIFA World Cup 2026 football kits and strong demand for the latest Originals collections. Accessories sales increased by 20%, while footwear sales rose by 1%.

In comparison to the second quarter of 2025, the company recorded double-digit net sales growth on a currency-neutral basis in several regions, including include Greater China, North America, Latin America, Japan and South Korea, as well as Emerging Markets, with the respective figures standing at 15%, 17%, 28%, 18% and 12%. Meanwhile, in Europe, second-quarter net sales grew by 6% year-on-year, as the company maintained a cautious approach to wholesale sell-in.

According to the statement, “all markets, including Europe, posted strong double-digit growth in DTC, driven by double-digit increases in both own retail and e-commerce, reflecting continued very high demand across the brand’s product offering”.

In the second quarter of this year, adidas’ gross margin increased by 0.8 percentage points compared to the same period last year, reaching 52.5%. This was driven by strong full-price sales and a favourable channel mix but was partly offset by higher freight and sourcing costs, as well as US tariffs.

Despite investing an additional 212 million euros in marketing to support the FIFA World Cup and other brand campaigns, the company’s second-quarter operating profit increased by 5% year-on-year to 574 million euros, while net income rose by 6% year-on-year to 398 million euros. Earnings per share stood at 2.10 euros.

First-Half Highlights

In the first half of the year, adidas’ currency-neutral revenue increased by 14% (1.6 billion euros), while reported revenue rose by 10% to 13.3 billion euros, reflecting an unfavourable foreign exchange impact of almost 400 million euros.

During this six-month period, gross margin remained stable at 51.8%, despite higher US tariffs and unfavourable currency movements. This was supported by healthy full-price sales and a favourable business mix.

The company’s first-half operating profit increased by 11% year-on-year to 1.28 billion euros, despite continued investment in marketing and distribution, with the operating margin remaining at 9.6%.

Full-Year Outlook

“Within an environment that is still characterized by macroeconomic challenges, elevated uncertainty and a promotional marketplace, particularly in Europe”, adidas has raised its outlook for 2026 and now expects currency-neutral revenue growth of between 9% and 10% (previously: high single digits). The company is still projecting an increase in operating profit to around 2.3 billion euros.

Image Credits: news.adidas.com

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