Sportswear giant Adidas has held firm on its guidance following a “strong” first quarter but warned of eventual price hikes and ongoing “uncertainty” within the market as a result of US tariffs and “macroeconomic risks”.
Adidas reported a €700m (£595.5m) increase in revenue during the first quarter of the year, up from €5.46bn (£4.64bn) in 2024 to reach €6.15bn (£5.23bn).
Operating profit at the German sportswear giant also improved year on year from €336m (£285.9m) to €610m (£519m), resulting in an operating margin of 9.9%.
Adidas noted that following the completion of its remaining Yeezy inventory at the end of last year, today’s results for the first quarter of the 2025 financial year exclude any Yeezy contribution.
Adidas called its performance “better than expected” and noted double-digit growth across “all markets and channels”, which was driven by both its Originals range and its sportswear offer.
Adidas hailed the ongoing demand for variations of its iconic Samba trainers, as well as the Campus and SL72 trainers. The sportswear retailer also said it has begun to “reintroduce” its heritage Superstar trainer.
Adidas also credited the success of its collaborations with the likes of music producer and fashion designer Pharrell Williams and singer Tate McRa,e among others and its presence at events such as Paris Fashion Wee,k which boosted brand visibility.
With an eye to its sportswear arm, Adidas noted the rise in demand for its running range and increased demand for footwear and performance apparel.
In terms of outlook, Adidas maintained its guidance but said that the “range of possible outcomes has increased” due to uncertainty surrounding US tariffs and “higher macroeconomic risks”.
Adidas chief executive Bjørn Gulden also warned of eventual price hikes for its products for the US market due to the higher tariffs.
Gulden added that to date, it is “impossible to quantify” or “conclude what impact” the higher tariffs will have on the demand for its products.
Gulden said: “I am very proud of what our team achieved in Q1. Double-digit growth across all markets and channels in today’s volatile environment shows the strength of our brand and underlines the great job our people are doing. The operating profit of €610 million and the 9.9% operating margin prove the great potential of our company. A great quarter!
“In a ‘normal world’ with this strong quarter, the strong order book and in general a very positive attitude towards adidas, we would have increased our outlook for the full year both for revenues and operating profit. The uncertainty regarding the US tariffs has currently put a stop to this.
“Although we had already reduced the China exports to the US to a minimum, we are somewhat exposed to those currently very high tariffs. What is even worse for us is the general increase in US tariffs from all other countries of origin. Since we currently cannot produce almost any of our products in the US, these higher tariffs will eventually cause higher costs for all our products for the US market. Given the uncertainty around the negotiations between the US and the different exporting countries, we do not know what the final tariffs will be.
“Therefore, we cannot make any ‘final’ decisions on what to do. Cost increases due to higher tariffs will eventually cause price increases, not only in our sector, but it is currently impossible to quantify these or to conclude what impact this could have on the consumer demand for our products.
“As always, we will try to maneuver through this uncertainty in the most pragmatic, agile and flexible way. We have all parts of the organisation involved and will do everything we can to ensure that our US retail partners, and our US consumers will get the Adidas product they want and to the best possible price.
“We currently see a positive development in all other markets and will, of course, try to compensate for the uncertainty in the US by delivering even better results in the rest of the world. We therefore stick to our original outlook but admit that there are uncertainties that could put negative pressure on this later in the year.
“The adidas brand is strong, we have great people and enough resources to get even stronger through this uncertain and difficult period.”
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