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Adidas has recorded record annual revenues of €24.8bn (£21.56bn) for 2025, representing 13% currency-neutral growth, and expects operating profits to reach €2.3bn (£2.00bn) in 2026.
The company reported a 54% increase in operating profit to €2.05bn (£1.78bn), with net income from continuing operations growing by nearly 70% to €1,37bn (£1.19bn).
These results were achieved despite the complete absence of Yeezy-branded revenues, which contributed approximately €650m (£565.1m) in the previous year.
Footwear sales grew by 12% to €14.23bn (£12.37bn) while apparel increased by 15% to €8.76bn (£7.62bn), supported by momentum in the Running and Football categories.
Regional performance was positive across all markets, Latin America recording the highest growth of 22% to €2.92bn (£2.54bn), followed by Emerging Markets which saw a 17% uptick to €3.51bn (£3.05bn).
Europe recorded a 10% growth in revenues to €8.13bn (£7.07bn). The group’s wholesale and direct-to-consumer also increased by 12% and 14% to €14.8bn (£12.8bn) and €9.93bn (£8.63bn)
Additionally, the group’s gross margin improved to 51.6%, aided by lower freight costs and a reduction in promotional activity.
For 2026, the firm projects high-single-digit revenue growth, reflecting growth of around €2.0bn (£1.74bn) in absolute terms.
However, management warned that operating profits will face a €400m (£347.7m) headwind due to unfavorable currency developments and higher US tariffs.
Despite these headwinds, the company expects profitability to further improve in 2026 and projects operating profit to increase to a level of around € 2.3bn (£2.00bn).
Mid-term targets through 2028 include currency-neutral net sales to grow at a high-single-digit rate also in both 2027 and 2028 and operating profit is expected to grow at a compound annual growth rate (CAGR) from 2026 to 2028.
Bjørn Gulden, Adidas CEO, said: “I am again very proud of what our people have achieved. Driving double-digit growth in the fourth quarter despite all the external turbulence, and more than doubling our operating profit in the quarter made the year end very well and made 2025 much better than we had planned and expected when the year started.
“The double-digit growth in all markets and all channels is of course very pleasing, but even more important is that this is quality growth. Our markets have been very good at managing that the right product in the right amount has been sold in their markets and that we have managed to keep full-price sell-throughs high and discounts under control. The gross margin of 51.6% (without Yeezy) is historically high and underlines this performance and the strength of our brand.”
He added: “…Our confidence in Adidas’ future top- and bottom-line growth and cash flow generation is also the reason why we now have decided to launch a share buyback. We will buy back shares for up to €1bn (£870m) this year.
“For 2026 we expect high-single-digit growth currency-neutral, which will add another €2bn (£1.74bn) in revenue. We expect operating profit, despite the headwind from tariffs and negative FX of around €400m (£347.7m), to grow faster than revenue and to increase to around €2.3bn (£2bn). That will in my opinion define Adidas again to be a healthy and successful company. For 2027 and 2028 we expect to continue to take market share, grow sales at a high-single-digit rate and deliver an operating margin of more than 10% in 2028. I look forward to this journey.”
