Adidas AG ( (ADDYY) ) has released its Q3 earnings. Here is a breakdown of the information Adidas AG presented to its investors.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Adidas AG, a leading global sportswear company, is renowned for its innovative athletic footwear, apparel, and accessories, catering to both performance and lifestyle markets.
In its latest earnings report, Adidas AG announced record revenues for the third quarter of 2025, driven by strong brand momentum and double-digit growth across various markets and product categories. The company also upgraded its full-year financial outlook, reflecting its robust performance.
Key highlights from the report include a 12% currency-neutral growth in brand Adidas, leading to net sales of €6.6 billion. The gross margin improved to 51.8%, and operating profit rose by 23% to €736 million, with an operating margin of 11.1%. The company’s net income for the quarter was €485 million, despite challenges from hyperinflation-related effects. Additionally, Adidas experienced double-digit growth in both footwear and apparel, with significant contributions from its Performance and Lifestyle segments.
Adidas’s strong financial performance is further supported by double-digit growth across all regions and channels, including Europe, North America, and Greater China. The company’s direct-to-consumer business saw a 14% increase, driven by e-commerce and retail store expansions. The gross margin improvement was attributed to lower product and freight costs, despite unfavorable currency impacts.
Looking ahead, Adidas remains optimistic about its future growth, expecting continued demand across its product segments. The company anticipates a 9% increase in overall revenues for 2025 and projects its operating profit to reach around €2.0 billion, buoyed by its strategic brand investments and market expansions.