Adidas lifts 2026 profit target to 2.5 billion euros as Europe lags

A tariff refund lifts the quarter

Adidas reported third-quarter net profit of 706 million euros on Thursday, 29 October 2026, up 53% year on year. Analysts polled by Factset had expected 574 million euros. The figures confirmed preliminary results released about a week earlier, which showed revenue of 7.25 billion euros, up 9%, and operating profit (Ebit) up 37% to 1.01 billion euros. Part of the gain came from a refund of about 200 million euros on US tariffs, after a court ruled the duties were unlawful. Another 100 million euros came from selling goods at smaller discounts than the company had planned, and gross margin reached 54.3%, 2.5 points higher than a year earlier.

Reported net profit706

Factset analyst estimate574

Reported net profit

706 million euros

Factset analyst estimate

574 million euros

Data from the article text

Guidance goes up, with a reserve

For 2026, Adidas now expects operating profit of about 2.5 billion euros, up from its earlier target of 2.3 billion, and revenue growth of 9% to 10%. Chief executive Björn Gulden said 100 million euros has been set aside for possible write-downs such as unprofitable stores, outdated IT or job cuts, though nothing has been decided. Revenue rose 11% over the first three quarters. Gulden said the company was quite proud of what it had delivered, and Adidas shares rose 3.6% to 163.70 euros. Gulden added that the group is well placed for both coming years.

“We are super well positioned for 2026 and also for 2027.”

Previous target2.3

Raised target2.5

Previous target

2.3 billion euros

Raised target

2.5 billion euros

Data from the article text

Europe is the only shrinking market

Europe was the only region where sales fell in the third quarter, down 4% to 2.24 billion euros on a currency-neutral basis. Adidas said it deliberately supplied fewer goods to wholesalers to avoid a discount battle in the leisure shoe market, while wholesale sales rose only 2%. Direct sales through online channels and its own stores grew 17%. Deliveries in parts of Europe also slipped from September into October because of a changeover to a new inventory system. Sales grew 12% in North America and 13% in Greater China, where rival Nike has seen sales fall for nine consecutive quarters.

Europe-4%

North America12%

Greater China13%

Europe

-4 %

North America

12 %

Greater China

13 %

Data from the article text

For the fourth quarter, the company expects Europe to return to growth at a high single-digit rate, partly because delayed shipments move into the period. Adidas stated the case in its own words.

“The timing shift of revenues and higher wholesale sell-in are expected to lead to high-single-digit growth in Europe in Q4.”

Apparel carries growth as footwear stalls

Apparel revenue rose 19% in the third quarter, while sports gear grew 14%. Everyday clothing and football, boosted by the World Cup in July, led the gains, whereas footwear stagnated. The company credited new apparel collections, which are in strong demand worldwide, with driving its lifestyle business. Wholesale and direct sales moved differently, with direct channels growing faster than the wholesale business.

The race with Nike

Gulden wants Adidas back at the top of the industry, a position Nike has held since the late 1980s. He gave no timetable, however, and said the aim applies to most markets rather than the United States, Nike's home market. The latest quarterly revenue figures still show a gap of a little over three billion euros between the two companies. Nike does not expect rising sales next year either. Gulden said the company is taking market share from rivals.

“We are taking market share from other companies.”