Adidas reports first-quarter operating profit above expectations
Adidas Outperforms Market Expectations in Q1 2026
Strong Demand Drives Profit Growth
April 29 (Reuters) - Germany's Adidas on Wednesday reported better-than-expected operating profit in the first quarter, helped by strong demand despite what CEO Bjorn Gulden described as a "very volatile and heavily discounted" retail environment, especially in sneakers.
Sales Performance and Regional Impact
Group net sales rose 14% currency-neutral to 6.6 billion euros ($7.7 billion) in the quarter, even with several countries in the Middle East posting sales declines due to the conflict in the region, the sportswear maker said.
Inventory Management Strategies
Adidas said it was exercising discipline to not sell too many products to retailers and thus avoid sneakers having to be discounted.
Competitive Landscape
U.S. rival Nike said earlier this month it was being "aggressive" with markdowns as it tries to clear unsold stock.
Financial Highlights
Adidas' operating profit in the first three months of 2026 rose by 16% to 705 million euros, above the 647 million euros projected by analysts in a company-compiled poll, up from 610 million euros a year earlier.
Key Drivers of Sales
Sales were helped by increased demand in football gear on the back of the FIFA World Cup 2026 starting in June, Adidas said.
Currency Exchange Rate
($1 = 0.8546 euros)
Reporting Credits
(Reporting by Linda Pasquini in Gdansk and by Helen Reid in London, editing by Ludwig Burger and Thomas Seythal)
