German sportswear giant Adidas has sprinted past expectations in 2025. According to preliminary results released today, the company reported a 13% increase in revenue, reaching €24.811 billion.
The brand’s financial health showed significant muscle, with operating profit climbing from €1.337 billion in 2024 to €2.056 billion in 2025—an increase of over €700 million.
Key Financial Highlights
- Total Revenue: €24.811 billion (+13% YoY).
- Gross Margin: Improved to 51.6% (up from 50.8%).
- Operating Profit: €2.056 billion.
- Stock Buyback: Adidas plans to repurchase up to €1 billion in shares starting February 2026.
Strategic Growth and Market Performance
CEO Bjørn Gulden attributed the success to “full-price sales and controlled discounting,” noting that the 51.6% gross margin (excluding the Yeezy line) is historically high. Despite currency conversion headwinds, the company saw double-digit growth across all markets and channels.
Looking ahead, the brand is positioning itself for a massive 2026, focusing on the Winter Olympics and Paralympics in Italy, as well as the FIFA World Cup in the summer.
The Investor Contrast
Despite the record-breaking numbers, the announcement follows a recent downgrade by Bank of America. The bank lowered Adidas from “Buy” to “Underperform,” citing concerns over a potential return to single-digit growth and a more demanding macroeconomic environment through 2027.