Adidas AG has reported a robust start to FY26, delivering a 14 per cent increase in currency-neutral revenue to €6.6 billion, effectively outpacing market expectations. Despite a ‘very volatile’ global retail environment characterized by aggressive discounting in lifestyle segments, the German sportswear giant improved its operating profit by 16 per cent to €705 million.
This financial resilience is attributed to a structural shift toward full-price sales and a highly successful diversification of its product mix. While footwear growth moderated to 4 per cent, the apparel division emerged as a primary growth engine, with revenues jumping 31 per cent on the back of locally relevant collections and high-performance training gear.
Momentum from elite sports and global events
The brand’s technical authority was reinforced by a historic milestone in distance running, where Kenyan athlete Sabastian Sawe utilized the Adizero Adios Pro Evo 3 to record the first-ever sub-two-hour marathon in an official race. This achievement has catalyzed a 29 per cent growth in performance-category revenues. Additionally, the company has successfully front-loaded its supply chain for the FIFA World Cup 2026, mitigating potential transportation disruptions in the Middle East. High demand for national team kits and the official ‘Trionda’ match ball is expected to sustain this momentum into the second quarter, even as the firm navigates a €400 million headwind from unfavorable exchange rates and U.S. tariffs.
Direct-to-consumer strength and regional outperformance
The transition to a premium, direct-to-consumer (DTC) model remains a mechanical necessity for margin protection, with DTC sales rising 22 per cent globally. E-commerce specifically grew by 25 per cent, reflecting a successful pivot toward digital engagement. Regionally, Latin America led with a 26 per cent expansion, followed by 17 per cent growth in Greater China. The discipline of not overselling into retailers is currently crucial, stated Bjørn Gulden, CEO, emphasizing, 90 per cent of current inventory is now positioned for future seasons. Consequently, Adidas has maintained its full-year guidance, projecting an operating profit of approximately €2.3 billion for 2026.
Adidas is the world’s second-largest athletic footwear and apparel manufacturer, operating across 160 countries. The company focuses on performance innovation and "Terrace" lifestyle classics like the Samba and Gazelle. Following a strong Q1 FY26, Adidas aims for high-single-digit sales growth, leveraging its 3,000-store global network and a renewed focus on technical running and football.
