German sportswear giant adidas has reported a net sales increase of 2.2% to €5.95bn ($6.85bn) in the second quarter (Q2) of 2025.
It has posted a 12% currency-neutral revenue increase for its namesake brand in the quarter, indicating sustained momentum.
The Yeezy inventory sale was completed late in 2024. The revenues, including Yeezy sales from the previous year, showed an 8% increase.
adidas' operating profit saw a 58% increase to €546m ($631.1m), with an operating margin increase of 3.2 percentage points to 9.2%.
Net income from continuing operations jumped 77% to €375m, resulting in basic and diluted earnings per share from continuing operations of €2.03.
The apparel category has seen 17% growth, driven by strong product offerings across sports categories, and footwear revenues rose 9% on a currency-neutral basis.
Categories such as running, training, sportswear and performance basketball have been particularly strong. Accessories also saw a 7% increase during the quarter.
adidas has also seen strong underlying growth across all markets, with double-digit increases in North America, Greater China, Latin America, emerging markets and Japan/South Korea. The brand’s Europe revenue grew 7%.
CEO Bjørn Gulden stated: “We feel the current global growth and the success in markets like Greater China, South Korea or Japan prove that our strategy works and that we are moving in the right direction.”
Gross margin improved 0.9 percentage points to 51.7%, primarily due to reduced discounting and lower product and freight costs, partially offset by currency fluctuations and changes in the business mix.
In the first half (H1) of 2025, currency-neutral revenues for the Adidas brand were up 14%. The brand saw double-digit growth across all markets and channels.
Net income from continuing operations more than doubled to €811m.
Footwear revenues increased 16%, and apparel sales grew 12%. The gross margin rose 0.9 percentage points to 51.9% during H1.
adidas has confirmed its full-year outlook despite external volatility and macroeconomic risks.
The company expects currency-neutral sales to increase at a high-single-digit rate in 2025 and projects its operating profit to reach between €1.7bn and €1.8bn.
Gulden added: “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. We do also not know what the indirect impact on consumer demand will be should all these tariffs cause major inflation.”
