Adidas reports 70% rise in operating profit despite tariff concerns

Adidas has reported a 70% increase in operating profit to €1.15bn (£994.5m) in the first half of 2025, up from €682m (£589.8m) during the same period last year. 

Revenues for the six-month period rose 14% year-on-year, supported by the completion of Yeezy inventory sales at the end of 2024.

Footwear revenues were also up 16% with strong double-digit growth in Originals, Sportswear, Running, Training and Performance Basketball. 

Apparel sales rose 12%, driven by similar gains across Originals, Sportswear, Running, Training and Outdoor, and Accessories revenue grew 8%.

Regionally, the Adidas brand recorded double-digit growth in all markets. Revenue in Europe rose 11%, North America increased 14% and Greater China was up 13%. 

Sales climbed 25% in Latin America, 19% in Emerging Markets and 15% in Japan and South Korea.

Additionally, wholesale and direct-to-consumer (DTC) revenues rose 16% and 12% respectively. Within the DTC channel, own retail revenue increased 11% and e-commerce sales were up 13%.

Looking ahead, Adidas said that external volatility and macroeconomic risks had increased significantly since it issued its full-year outlook in March. The company maintained its guidance but acknowledged a wider range of possible outcomes.

It continues to see “upside potential” based on first-half results, brand momentum and a strong order book for the remainder of 2025. However, it warned that uncertainty around US tariffs could have a direct impact.

The group stated that the latest indications of tariffs will directly increase the cost of our products for the US with up to €200m during the rest of the year.

It expects operating profit to increase to between €1.7bn (£1.47bn) and €1.8bn (£1.56bn) in 2025.

Adidas chief executive Bjørn Gulden said: “The year has started great for us and normally we would now be very bullish in our outlook for the full year. We feel the volatility and uncertainty in the world does not make this prudent. We still do not know what the final tariffs in the US will be.

“We have already had a negative impact in the double-digit euro millions in Q2 and the latest indications of tariffs will directly increase the cost of our products for the US with up to €200m during the rest of the year.”

He added: “We also do not know what the indirect impact on consumer demand will be should all these tariffs cause major inflation. I have seen that many companies have either removed their outlook fully or reduced it dramatically. We have decided to stay with our initial outlook for the full year and a guidance for an operating profit of between €1.7bn and €1.8bn.

“We currently feel confident to deliver it, but of course this might change – also upwards should headwinds be less than we currently assume. We will as always manage through this volatile environment and all the uncertainties as best as we can but always with the objective of strengthening the Adidas brand and our company mid- and long-term. That is what Adidas deserves.”