Companies

adidas off to a strong start in 2026

Apr 30, 2026 Germany

The Germany-based sportswear company has reported a strong start to 2026, with double-digit sales growth and increased profitability, driven by widespread demand for its products across markets

“I am very proud of the results our teams delivered in the first quarter. Sales growth of 14% to 6.6 billion euros and almost 100 million euros more operating profit to 705 million euros is very strong in the current environment”, highlighted adidas CEO Bjørn Gulden.

First-Quarter Results

In the first quarter of the 2026 financial year, adidas reported a 14% increase in currency-neutral revenue compared to the same period last year. Revenue totalled 6.59 billion euros in euro terms, compared to 6.15 billion euros in 2025, despite an adverse currency impact of around 350 million euros due to the stronger euro.

The company recorded broad-based growth across all product categories. On a currency-neutral basis, footwear revenue grew by 4%, apparel revenue by 31%, and accessories revenue by 13%, on a comparable basis to the first quarter of the 2025 financial year.

From a channel perspective, “the 22% sell-out growth in our DTC globally with e-com growing 25% and own retail up 19% shows that consumers all over the world like what we offer”, said adidas CEO. Meanwhile, wholesale revenue increased by 8% year-on-year, as the company adopted a cautious approach in Europe and North America against the backdrop of weaker consumer spending.

On a currency-neutral basis, first-quarter sales increased by 12% in North America, by 17% in Greater China, by 23% in Japan and South Korea, and by 26% in Latin America. Despite several countries in the Middle East posting sales declines due to the conflict in the region, sales in Emerging Markets increased by 10%. Revenues in Europe grew by 6%, as the company maintained a cautious approach to wholesale sell-in.

“Our teams have worked very hard to optimize our product offer, our marketing, and our activations market by market. That all markets recorded double-digit growth in their DTC business is very very rare, and it is a proof that our teams are doing a lot of right things”, Gulden added.

Operational Performance

The sportswear company reported a gross margin of 51.1% in the first quarter, a 1 percentage point decrease year-on-year. Gains from full-price sales and a more favourable product mix were offset by currency headwinds and higher US tariffs.

adidas' operating profit increased by 16% year-on-year to 705 million euros in the first quarter, raising the margin to 10.7%, and net income from continuing operations rose by 11% to 484 million euros.

Operating expenses increased by 3% to 2.68 billion euros, but as a percentage of sales, they declined, reflecting improved cost leverage. While maintaining a disciplined approach to overheads, the company continued to invest in its brand and marketing, including product launches and campaigns tied to the 2026 FIFA World Cup.

“We are now ready for the World Cup. Despite many supply and transportation issues, we have most of the product in the markets and look forward to a fantastic event that will be great for us (…). The world needs these sports events, where people from all over the world with all possible backgrounds come together to celebrate”, Gulden concluded.

Full-Year Outlook

adidas expects its currency-neutral sales to grow at a high single-digit rate in 2026, equivalent to around 2 billion euros in additional revenue. Despite headwinds from higher US tariffs and currency effects, estimated at around 400 million euros, the company forecasts that operating profit will rise to approximately 2.3 billion euros.

Image Credits: adidas-group.com

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