Adidas posted a strong performance in the first quarter of 2025, with revenues growing 13 per cent year-on-year to €6,153 million and operating profit soaring 82 per cent to €610 million. The company’s operating margin rose to 9.9 per cent, driven by strong brand momentum across all categories and regions, even without any contribution from Yeezy products.
The German sportswear giant saw currency-neutral revenues for the adidas brand increase 17 per cent, led by a 17 per cent rise in footwear, 8 per cent in apparel, and 10 per cent in accessories. Footwear growth was supported by robust demand for Originals, Sportswear, Running, Training, and Performance Basketball. The reintroduction of classic models like the Superstar and successful collaborations with celebrities and artists also helped drive sales.
Performance categories such as Running and Training recorded strong gains, with launches like the Adios Pro 4 and Evo SL enhancing adidas position in the performance segment. Meanwhile, Football, Outdoor, and Motorsport collections contributed to further category expansion.
Revenue grew at double-digit rates in all markets except North America, where growth was 3 per cent due to the phase-out of Yeezy. Excluding Yeezy sales, North America also posted double-digit growth. Latin America led regional performance with a 26 per cent revenue increase, followed by Emerging Markets at 23 per cent, and Europe, China, and Japan/South Korea each at 13 per cent or higher.
Gross margin improved by 0.9 percentage points to 52.1 per cent, driven by lower costs and reduced discounting. Marketing and point-of-sale expenses rose 14 per cent to €746 million, reflecting continued brand-building campaigns and major event sponsorships. Net income from continuing operations more than doubled to €436 million.
Despite the strong quarter, adidas is maintaining its full-year guidance due to uncertainty over potential new US tariffs. While the company has minimized exports from China to the US, it remains exposed to broader increases in US import duties. CEO Bjørn Gulden stated the company remains flexible and will focus on delivering strong performance in other regions to offset US market volatility.
For 2025, adidas expects high single-digit growth in currency-neutral sales and operating profit between €1.7 billion and €1.8 billion, excluding any contribution from Yeezy products. Inventories and working capital levels remain healthy to support ongoing growth.
