Adidas shares plunge as unchanged profit outlook overshadows sales upgrade

(Sharecast News) - Adidas shares plunged on Thursday after the sportswear group kept its full-year profit guidance unchanged despite raising its sales forecast, with investors appearing disappointed that stronger revenues would not translate into a bigger earnings upgrade. The Frankfurt-listed stock was down 16.8% at €151.65 by 0946 BST, putting it on course for its largest-ever one-day decline.

Adidas said currency-neutral revenues rose 14% in the second quarter, while reported sales increased 13% to a quarterly record of €6.74bn from €5.95bn a year earlier.

Direct-to-consumer revenues jumped 25%, including 27% growth in ecommerce and a 23% increase across its own stores. Performance revenues grew 39%, led by football and running, while apparel sales surged 35% and accessories increased 20%.

Gross margin improved by 0.8 percentage points to 52.5%, while operating profit rose just 5% to €574m from €546m, despite the strong sales performance. The company said marketing investment was €212m higher due to its World Cup campaigns and activations.

Chief executive Bjørn Gulden said: "The business in the quarter was also unbelievably strong: 14% growth in this volatile environment and an operating profit of €574 million despite us spending €212 million more in marketing underlines the current strength of both the brand and our products and shows what a fantastic job our people around the world are doing."

Adidas now expects currency-neutral sales to grow between 9% and 10% in 2026, up from its previous forecast for high-single-digit growth. However, it continued to forecast operating profit of around €2.3bn, below analysts' projections of nearly €2.5bn, potentially disappointing investors hoping the sales upgrade would be accompanied by higher profit guidance.

Separately, Adidas said Birgit Kretschmer would join its executive board on 1 September and succeed Harm Ohlmeyer as chief financial officer at the end of 2026. Kretschmer, currently CFO of fashion retailer C&A, previously spent 25 years at Adidas.