Adidas is anticipating a strong financial performance this year, despite several headwinds, as it gears up for a summer of sport.
The sports giant said that despite supply and transportation issues, it had most of its products in the markets and would continue to invest in marketing activities to drive brand momentum.
It comes as sales surged 7% to €6.6bn (£5.7bn) in the quarter to March 31, with double-digit DTC increases in all markets.
Footwear revenues rose 4%, while apparel sales increased 13% and accessories grew 13%.
Adidas attributed the 29% bump in performance revenues to the launch of its FIFA World Cup 2026 away jersey in March, new collections made in partnership with Formula 1 teams, and its new running shoe.
Operating profit grew 16% to €705m (£611m), up €100m (£86.6m) on the year before, driven by a healthy full-price sales mix and earlier product purchases and faster inbound deliveries that support product availability.
Looking ahead, Adidas said it expects operating profit for the year to rise to €2.3bn (£1.9bn). This is despite a €400m (£346m) hit from higher US tariffs and unfavourable currency developments.
Sales are forecast to increase at a high-single-digit rate in 2026, reflecting a growth of €2bn (£1.7bn).
“With a strong product pipeline across product divisions and categories, much improved retailer relationships, and a large roster of brand partners across sports and culture, adidas has all the building blocks in place to keep driving strong brand momentum and high-quality growth,” it said.
Adidas chief executive Bjørn Gulden said: “The general retail environment is currently very volatile and heavily discounted in many markets, especially in lifestyle footwear.
“The discipline of not overselling into retailers is therefore currently crucial. We do, of course, hope the environment stabilizes and that discounts will normalize, but this is unfortunately not in our control.
“We will continue to focus on keeping our discounts under control, delivering fresh and innovative products to the markets, and using sports events and other culturally relevant activations to connect with consumers.
“We are now ready for the World Cup. Despite many supply and transportation issues, we have most of the product in the markets and look forward to a fantastic event that will be great for us. But there is, of course, more to it.
“The world needs these sports events, where people from all over the world with all possible backgrounds come together to celebrate. Sports and sports events have the power to change people’s lives and to make the world a better place to live!”
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