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Adidas Tops Q1 Estimates, Keeps Outlook as FX and Tariffs Weigh

Management signals pricing discipline in a volatile, discount-heavy retail market.

Overview

  • Adidas, which reported results Wednesday, posted €6.6 billion in sales and €705 million in operating profit, beating forecasts and lifting the stock about 7%.
  • The company reaffirmed high‑single‑digit currency‑neutral sales growth and about €2.3 billion in 2026 operating profit as FX and higher U.S. tariffs are set to cut roughly €400 million, after currency moves already reduced reported Q1 revenue by about €350 million.
  • Growth leaned on apparel up 31% and performance sports up 29% with early World Cup shipments and a post‑London Marathon bump in running.
  • CEO Bjorn Gulden said conditions are very volatile and heavily discounted, so Adidas is limiting sell‑in to retailers to avoid markdowns as Nike pursues aggressive promotions.
  • Adidas also announced a share repurchase plan of up to €1 billion for 2026, according to outlets covering the results.