Major developments Q3 2025:
- Brand adidas grows 12% currency-neutral, leading to record net sales of € 6.6 billion
- Broad-based double-digit growth across markets, divisions, categories, and channels
- Gross margin improves 0.5 percentage points to 51.8%, despite unfavorable effects from currencies and tariffs
- Operating profit up 23% to € 736 million
- Operating margin improves 1.8 percentage points to 11.1%
- Net income of € 485 million, as hyperinflation-related effects weigh on financial result
Major developments 9M 2025:
- Brand adidas grows 14%, with double-digit increases in all markets and channels
- Operating profit up 48% to € 1.9 billion, reflecting an operating margin of 10.1%
- Net income increases 52% to € 1.3 billion
Increased outlook for FY 2025:
- Double-digit currency-neutral revenue growth for adidas brand
- Company revenues to increase by around 9% (previously: high-single-digit increase)
- Operating profit to increase to around € 2.0 billion (previously: € 1.7 – € 1.8 billion)
adidas CEO Bjørn Gulden:
“I am extremely proud of what our teams achieved in the third quarter with actually record revenues. 12% growth for the adidas brand leading to total revenue of € 6.63 billion is the highest we have ever achieved as a company in a quarter. I am especially happy to see that our performance business is growing strongly across categories and in all regions.
The environment is volatile with the tariff increases in the US and a lot of uncertainty among both retailers and consumers around the world, but our teams work hard, and our brand and our products resonate well with consumers.
Given the positive development in Q3, we have narrowed our top-line guidance and raised our full-year EBIT outlook from between € 1.7 billion and € 1.8 billion to around € 2.0 billion.
2025 is a success for us already. 14% growth for the adidas brand year-to-date and an EBIT margin above 10% is proof how strong our brand is. Being a global brand with a local mindset, empowering our markets to win their local consumers is the right strategy to be globally successful and is driving these strong results.
The focus is now on transitioning well into 2026, which will be another exciting sports year with the Winter Olympics right at the beginning, the biggest Football World Cup ever, and many more great events to look forward to.
adidas is a sports company that connects sports and street culture. We sell performance, comfort, and lifestyle. We see global demand for all these segments continue to grow. That is why we look positive into the future!”
Third-quarter results
adidas brand with 12% currency-neutral growth in Q3
In the third quarter of 2025, currency-neutral revenues for the adidas brand increased 12% versus the prior year, or more than € 700 million in absolute terms, reflecting its continued and broad-based momentum. Having completed the sale of the remaining Yeezy inventory at the end of last year, the company’s results for the third quarter of 2025 do not include any Yeezy revenues (2024: around € 200 million). Including Yeezy sales in the prior year, currency-neutral revenues increased 8%. In euro terms, revenues reached a record level of € 6,630 million (2024: € 6,438 million) in the quarter, despite the strengthening of the euro against several currencies, which led to an unfavorable translation impact of more than € 300 million.
Double-digit increase in both footwear and apparel
Footwear revenues for the adidas brand grew 11% during the quarter on a currency-neutral basis. The broader and deeper product offering drove double-digit footwear growth in major sports categories, including Running, Football, Training, and Specialist Sports. Strong growth in Originals and Sportswear also contributed to the increase in footwear. Apparel sales grew 16% during the quarter as brand and product momentum continued to expand. Differentiated and locally relevant apparel collections fueled double-digit increases in Originals, Football, Running, Specialist Sports, and US Sports. Accessories grew 1% during the quarter.
Double-digit growth in both Performance and Lifestyle
Performance revenues increased 17% on a currency-neutral basis during the third quarter, led by strong double-digit growth in Running and Football. Momentum in Running increased further with growth of more than 30%, driven by Adizero. The Adios Pro Evo 2 and Adios Pro 4 secured multiple marathon victories, including wins in Tokyo, Berlin, and Chicago, while the Prime X Evo concept shoe broke the six-hour barrier, setting a new world record for the 100 kilometers at the ‘Chasing 100’ project in Italy. Given these strong performance credentials, adidas continued to expand its successful Evo SL franchise, offering Adizero features at a compelling price point, and also recorded growth in everyday running franchises such as Supernova. In Football, growth was fueled by new season on-pitch kits and culturally inspired collections for the brand’s major clubs. The launch of a wide range of product for Liverpool FC, the brand’s latest addition to its unique portfolio of partners, was particularly successful across the globe. Updated packs for the F50 and Predator footwear franchises further drove excitement and growth. adidas players Ousmane Dembélé, Aitana Bonmatí, Gianluigi Donnarumma, Lamine Yamal, and Vicky López all having been awarded at the Ballon d’Or provided positive halo effects across the brand’s entire Football offering. Several other categories, including Training, Specialist Sports, US Sports, and Motorsport also contributed to the broad-based growth in Performance on the back of product innovation and newness that resonate strongly with consumers. Examples include the Dropset and Rapidmove footwear franchises for strength athletes, broader and deeper offerings for credibility sports such as American football, tennis, swimming, rugby, and field hockey, or the extensive merchandise collection in partnership with the Mercedes-AMG PETRONAS Formula 1 team.
Lifestyle revenues for the adidas brand increased 10% on a currency-neutral basis in the third quarter, driven by double-digit growth in Originals. The popular Terrace franchises continued to see healthy demand backed by seasonal updates in colorways, materials, and new collaborations that cater to local consumer tastes. At the same time, the brand’s Low Profile offering continued to expand, with growth driven by updated looks for the Tokyo, Japan, and Taekwondo franchises, including animal-print and metallic iterations, as well as football- and ballet-inspired styles. After relaunching one of its most iconic franchises earlier this year, the brand also began to sequentially scale the Superstar, backed by a global campaign and market-led activations. In addition to evolving its classics footwear business, adidas continued to evolve its lifestyle running and lifestyle football offerings. Following successful activations, including the sought-after Pharrell Williams Adistar Jellyfish, the brand started to make silhouettes such as the Adistar Control, Goukana, and Megaride, as well as street-ready versions of the Predator and F50 more widely available. Building on the broad-based footwear momentum, Originals’ apparel offering continued to gain traction. The Firebird and Teamgeist collections see particularly strong demand, driven by their heritage and the use of differentiated materials such as knit and denim, as well as bold colors. Collaborations with Oasis, Wales Bonner, Edison Chen, Sporty & Rich, and collections created with several retail partners further supported growth in Originals. In Sportswear, increases were driven by growing demand for the brand’s commercial range, while innovative products such as the 3D-printed Climacool shoe and the revamped Z.N.E. apparel collection complemented the brand’s portfolio of sport-inspired lifestyle products.
Strong growth across all markets
In terms of regional performance during the third quarter, currency-neutral net sales for the adidas brand grew 12% in Europe, driven by double-digit growth in both wholesale and the brand’s direct-to-consumer (DTC) business. Revenues in Greater China (+10%), Emerging Markets (+13%), Latin America (+21%), and Japan/South Korea (+11%) were also up double-digits, with particularly strong increases in the company’s DTC channels in all regions. Revenues for the adidas brand in North America were up 8%, reflecting double-digit growth in both footwear and apparel, while accessories sales declined during the quarter.
Double-digit growth across all channels
From a channel perspective, growth for the adidas brand was equally broad-based with double-digit increases in all channels. Strong sell-through rates in our retail partners’ stores and increased shelf space allocations continued to drive wholesale revenues, which increased 10% on a currency-neutral basis. Own retail revenues were up 13%, driven by strong like-for-like growth in the company’s global fleet of own stores and continued investments into retail doors. E‑commerce sales increased 15%, with a continued focus on full-price propositions and on top of more than 25% growth in the prior-year quarter. As a result, sales in the brand’s DTC business grew 14% in Q3.
Gross margin improves 0.5 percentage points to 51.8%
The company’s gross margin increased 0.5 percentage points to 51.8% during the third quarter (2024: 51.3%). The positive development was mainly driven by lower product and freight costs, a better business mix, as well as continued strong sell-throughs, which more than offset the negative impacts from unfavorable currency fluctuations and higher US tariffs.
Continued brand investments and overhead discipline
Other operating expenses decreased by 3% to € 2,740 million in the third quarter (2024: € 2,837 million). As a percentage of sales, other operating expenses decreased 2.7 percentage points to 41.3% (2024: 44.1%). Marketing and point-of-sales expenses were up 10% to € 798 million (2024: € 724 million) as brand investments remained a priority. Next to ‘You Got This,’ its overarching brand campaign, adidas executed several dedicated product campaigns. These featured growing franchises such as the Superstar and Evo SL and involved a multitude of market-led physical events to connect with local sport and streetwear culture. In addition, the increase in marketing expenses reflects new and extended partnerships. Recent brand partner signings include Liverpool FC, the future Audi Formula 1 team, Jeremiah Smith, Penn State, and Tennessee Athletics. As a percentage of sales, marketing and point-of-sale expenses were up 0.8 percentage points to 12.0% (2024: 11.2%). Operating overhead expenses decreased 8% to € 1,943 million (2024: € 2,114 million), as the company continued to invest into its sales and distribution capabilities while managing its overall cost base. As a percentage of sales, operating overhead expenses decreased 3.5 percentage points to 29.3% (2024: 32.8%), reflecting strong operating leverage.
Operating profit growing to € 736 million reflects operating margin of 11.1% in Q3
The company’s operating profit increased by 23% to € 736 million in the third quarter (2024: € 598 million), reaching an operating margin of 11.1%, up 1.8 percentage points compared to the previous year (2024: 9.3%). Having completed the sale of the remaining Yeezy inventory at the end of last year, there was no Yeezy contribution to the company’s operating profit in the quarter (2024: around € 50 million).
Net income from continuing operations increases to € 482 million
Net financial expenses amounted to € 86 million (2024: net financial income of € 4 million), with the development mainly driven by currency and hyperinflation-related effects. Financial expenses had fallen significantly in the prior-year quarter due to favorable currency and hyperinflation-related effects. In contrast, the company recorded a significant negative impact from currency and hyperinflation-related effects in Q3 this year and financial expenses increased accordingly. Against an income before taxes of € 650 million (2024: € 601 million), the company recorded income taxes of € 169 million (2024: € 133 million). The tax rate reached 25.9% (2024: 22.1%), reflecting timing effects related to the recognition of withholding taxes. As a result, net income from continuing operations increased by 3% to € 482 million (2024: € 469 million) and led to basic and diluted EPS from continuing operations of € 2.57 (2024: € 2.44).
First nine months results
adidas brand revenues up 14% currency-neutral in the first nine months of the year
Currency-neutral revenues for the adidas brand increased 14% in the first nine months of 2025, or more than € 2.2 billion in absolute terms. Having completed the sale of the remaining Yeezy inventory at the end of last year, the company’s results for the first nine months of 2025 do not include any Yeezy revenues (2024: more than € 550 million). Including Yeezy sales in the prior year, currency-neutral revenues increased 10%. In euro terms, revenues were up 6% to € 18,735 million (2024: € 17,718 million), as currency developments had an unfavorable translation impact.
Strong adidas brand momentum drives double-digit growth in footwear and apparel
Footwear revenues for the adidas brand increased 14% on a currency-neutral basis during the first nine months of the year, reflecting strong double-digit growth in Originals, Sportswear, Running, Training, Performance Basketball, and Specialist Sports. Apparel sales grew 14%, led by double-digit growth in Originals and Running, while Football, Training, Golf, Specialist Sports, and Sportswear also posted strong increases. Accessories grew 6% during the first nine months of the year.
adidas brand with double-digit growth in all markets
In the first nine months of 2025, currency-neutral revenues for the adidas brand increased at double-digit rates in all markets. Europe grew 11%, North America was up 12%, and Greater China also increased 12%. In addition, Latin America (+24%), Emerging Markets (+17%), and Japan/South Korea (+14%) also recorded double-digit increases.
adidas brand up double digits across all channels
From a channel perspective, the adidas brand also showed strong and broad-based growth in the first nine months of 2025. Wholesale revenues increased 14% on a currency-neutral basis and the DTC business grew 13%. Within DTC, own retail revenues were up 12% and e‑commerce sales increased 14%.
Gross margin improves 0.8 percentage points to 51.9%
During the first nine months of the year, the company’s gross margin increased 0.8 percentage points to 51.9% (2024: 51.1%). The year-over-year increase of the adidas brand gross margin was even stronger. The positive development was mainly driven by lower product and freight costs, a better business mix, as well as continued strong sell-throughs, which more than offset unfavorable impacts from currencies and higher tariffs.
Operating margin of 10.1% in the first nine months of 2025
Other operating expenses decreased by 1% to € 7,905 million (2024: € 7,953 million) in the first nine months of 2025. As a percentage of sales, other operating expenses decreased 2.7 percentage points to 42.2% (2024: 44.9%). Marketing and point-of-sale expenses were up 8% to € 2,255 million (2024: € 2,087 million). As a percentage of sales, marketing and point-of-sale expenses increased 0.3 percentage points to 12.0% (2024: 11.8%). Operating overhead expenses decreased 4% to € 5,650 million (2024: € 5,866 million). As a percentage of sales, operating overhead expenses decreased 2.9 percentage points to 30.2% (2024: 33.1%). As a result, the company’s operating profit increased 48% to € 1,892 million (2024: € 1,280 million), reflecting an operating margin of 10.1%, up 2.9 percentage points compared to the previous year (2024: 7.2%). Having completed the sale of the remaining Yeezy inventory at the end of last year, there was no Yeezy contribution to the company’s operating profit in the first nine months of 2025 (2024: around € 150 million). Net income from continuing operations increased by 52% to € 1,293 million (2024: € 851 million), while basic and diluted earnings per share from continuing operations increased to € 7.04 (2024: basic earnings per share from continuing operations of € 4.50; diluted earnings per share from continuing operations of € 4.49).
Average operating working capital as a percentage of sales at 21.9%
Inventories increased 21% to € 5,471 million as at September 30, 2025 (2024: € 4,524 million) and were up 26% in currency-neutral terms. In addition to the support for the planned top-line growth, this development reflects the low comparison base in the prior year, earlier product purchases for World Cup-related products, as well as faster inbound deliveries. Current or future season products continue to account for the vast majority of the inventory position. Operating working capital was up 26% to € 6,179 million (2024: € 4,886 million) and average operating working capital as a percentage of sales increased 1.3 percentage points to 21.9% (2024: 20.6%).
Healthy leverage ratio of 1.6x
Cash and cash equivalents amounted to € 1,030 million at September 30, 2025 (2024: € 1,781 million), reflecting the increased dividend payout in May and operating working capital investments in the first nine months of 2025. Adjusted net borrowings increased 14% to € 4,787 million at September 30, 2025 (2024: € 4,211 million), mainly due to the decline in cash and cash equivalents. The company’s ratio of adjusted net borrowings over EBITDA decreased to 1.6x (2024: 2.1x).
Full-year outlook
Increased outlook with operating profit now expected to reach around € 2.0 billion
On October 21, adidas upgraded its full-year financial guidance. For the full year, the company continues to expect double-digit currency-neutral revenue growth for the adidas brand. Including Yeezy sales in the prior year (2024: around € 650 million), currency-neutral revenues are now expected to increase by around 9% (previously: increase at a high-single-digit rate). The company’s operating profit is now expected to increase to a level of around € 2.0 billion (previously: to reach a level of between € 1.7 billion and € 1.8 billion). The improved profitability outlook reflects continued brand momentum, the better-than-expected business performance, as well as the company’s successful efforts to partly mitigate the additional costs resulting from increased US tariffs.
