Exceeding analyst expectations, German sportswear and apparel maker, Adidas reported a 82 per cent rise in Q1, FY25 operating profit to €610 million ($692 million), delivering a 9.9 per cent margin. In a company‑provided consensus, analysts had forecasted a 8.9 per cent margin and €546 million in profit.
The strong performance of sneakers like the Samba and Gazelle helped Adidas capture additional market share from its US rival Nike, as well as maintain an edge over newer sportswear brands such as On Running and Hoka in uncertain times.
Since parting ways with rapper Ye and discontinuing its lucrative Yeezy sneaker line in October 2022, Bjorn Gulden, CEO, Adidas has successfully steered the brand’s turnaround. All remaining Yeezy inventory was sold off by the end of 2024.
Adidas’ Q1, FY25 sales increased by 13 per cent to €6.15 billion, topping the €6.095 billion consensus. Excluding Yeezy sales from the prior year, Adidas’ brand revenue increased by 17 per cent Y-o-Y.
