“I am very happy and actually again proud of what our team has delivered in both the second quarter and first half of 2025. We have continuously grown double digits, and we ended the first half year with growth of 14% for the adidas brand”, commented the adidas CEO Bjørn Gulden. 

Second Quarter Results

In the second quarter of the 2025 financial year, adidas’ currency-neutral revenue increased by 12%, as compared to the same period last year. In euro terms, revenue increased by 2% to 5.95 billion euros, as the strengthening of the euro against several currencies resulted in a negative translation effect of around 300 million euros during the period. 

The company experienced “strong underlying growth across all markets”. Currency-neutral sales rose by 15% in North America, 11% in Greater China, 23% in Latin America, 14% in Emerging Markets and 15% in Japan/South Korea in the second quarter of the current year, on a comparable basis to the same period of 2024, reflecting double-digit improvements in both the wholesale and DTC business. Meanwhile, Currency-neutral sales in Europe rose by just 7% year-on-year. 

In the three months to the 30^th of June, adidas’ underlying gross margin widened by 0.9 percentage points year-on-year to 51.7%, driven by reduced discounting and lower product and freight costs. These factors “more than” offset the negative impacts of currency exchange rates and changes in the business mix. The first negative effects of increased tariffs also had an impact on the development of the gross margin.

In the second quarter, adidas achieved an operating profit of 546 million euros, up by 58% on the same period last year. This reflects a 3.2 percentage point improvement in the operating margin, which increased to 9.2%. 

The company’s net income from continuing operations increased sharply by 77%, rising from 211 million euros in the second quarter of 2024 to 375 million euros. This resulted in basic and diluted earnings per share from continuing operations of 2.03 euros, as compared to 1.09 euros in the same period of the previous year.

First Half Highlights 

In the first half of the current fiscal year, adidas recorded a currency-neutral revenue growth of 14%, on a comparable basis to the same period of last year. In euro terms, revenues grew by 7% year-on-year to 12.1 billion euros, due to unfavourable currency exchange rates.

The company’s operating profit amounted to 1.2 billion euros in the first half of 2025, as compared to 682 million euros in the same period of the previous year, reflecting a 3.5 percentage point increase in the operating margin to 9.6%.

Net income from continuing operations increased by 112%, rising from 382 million euros to 811 million euros in the first half of 2024. Basic and diluted earnings per share from continuing operations also rose, increasing from 2.05 euros to 4.47 euros.

Outlook

“The year has started great for us, and normally we would now be very bullish in our outlook for the full year. We feel the volatility and uncertainty in the world does not make this prudent. We still do not know what the final tariffs in the US will be. We have already had a negative impact in the double-digit euro millions in Q2 and the latest indications of tariffs will directly increase the cost of our products for the US with up to 200 million euros during the rest of the year. We do also not know what the indirect impact on consumer demand will be should all these tariffs cause major inflation”, acknowledged Bjørn Gulden. 

Nevertheless, adidas has reiterated its full year guidance for an operating profit of between 1.7 and 1.8 billion euros.