Adidas lifts profit forecast after record €1bn quarter

ADIDAS, with an Irish base in Clondalkin, expects “higher profitability” for the year after preliminary figures for the third quarter saw the “highest quarterly level on record” in terms of profit and revenue.

Based on preliminary figures for the third quarter, revenues at the German sports brand increased 9 per cent to a record €7.252 billion, with the highest quarterly profit recorded by the company seeing a rise of 37 per cent to €1.008bn.

The company now expects its operating profit to be around €100m higher than previously assumed for the entire year, with the operating profit projected to come in at €2.5bn (formerly €2.3bn).

Adidas CEO Bjørn Gulden noted that “investment in innovation” is paying off for the global brand.

The CEO said: “The investment and creativity in our marketing have created brand heat and again made us an attractive brand globally. Our investment in innovation is paying off, not only by great wins, stories and performances, but also with strong and profitable growth in Football, Running and Training.

“Our fantastic designers and development teams have created new apparel collections that are globally in high demand and currently fuelling our lifestyle business.”

During the quarter, adidas received the majority of its US tariff claims and recorded a corresponding refund of around € 200m, which contributed to the gross margin improvement.

In addition to the tariff refund, the strong gross margin development was driven by healthy full-price sales, while unfavorable currency developments had a negative impact.

“Regardless of where we go in the world, we see talented adidas people who show an enormous energy, a huge focus on serving our consumer and athletes, a passion for our brand and the company, and a fantastic spirit.

“In a volatile and complicated world, it is a privilege to work with such a great team.”