The German sportswear company raised its 2026 revenue outlook but kept its operating profit forecast unchanged at €2.3 billion
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Adidas posted record second-quarter net sales of €6.7 billion on Thursday, a 14% increase in currency-neutral terms, but operating profit rose just 5% to €574 million as the company spent €212 million more on marketing tied to the FIFA World Cup than it did in the same period last year.
The operating profit result fell short of analyst expectations of €623 million, according to the Wall Street Journal. Adidas stock fell more than 18% in European trading Thursday — a decline that, if it holds, would mark the steepest single-day percentage loss in the company's history since its November 1995 IPO.
The company raised its full-year revenue guidance, now expecting currency-neutral revenues to grow between 9% and 10%, up from a previous forecast of high-single-digit growth, the company said. The company left its full-year operating profit target of approximately €2.3 billion intact. Adidas added that its guidance excludes any benefit from possible U.S. tariff refunds, which the company estimates could amount to between $250 million and $300 million if recovered.
Adidas’s World Cup marketing campaign featured actor Timothée Chalamet, soccer stars Lionel Messi, Jude Bellingham, Lamine Yamal, and musician Bad Bunny. The company outfitted 14 national teams, provided gear for match officials, and supplied the official ball for the tournament. Marketing and point-of-sale expenses for the quarter totaled €924 million, or 13.7% of sales, up from 12.0% last year.
On a call with analysts, Gulden said he did not expect such a sharp drop in Adidas shares. "The business in the quarter was also unbelievably strong: 14% growth in this volatile environment and an operating profit of €574 million despite us spending €212 million more in marketing underlines the current strength of both the brand and our products," Gulden said in a statement.
Direct-to-consumer revenue grew 25% in the quarter, with e-commerce up 27% and own retail up 23%. The company's performance business — led by football and running — grew 39% on a currency-neutral basis.
Adidas also announced that Birgit Kretschmer will succeed Harm Ohlmeyer as chief financial officer, effective at the end of 2026. Kretschmer joins from C&A, where she served as CFO for six years, and previously spent 25 years at Adidas in various finance leadership roles. Ohlmeyer, who has been with Adidas for nearly 30 years and has served as CFO since May 2017, chose not to extend his Executive Board mandate beyond his current term, the company said.
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