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 2025an 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 Bjψrn 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.