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Investing.com -- Adidas raised its full-year guidance for 2025 after reporting record third-quarter revenues and stronger profitability. However, sales missed consensus estimates, sending the sportswear giant’s shares down 2% in early Wednesday trading.
Currency-neutral revenues for the adidas brand rose 12% in the third quarter, reflecting “broad-based double-digit growth across markets, product divisions, categories, and channels,” the company said.
Total revenue reached €6.63 billion, up from €6.44 billion a year earlier, but below the €6.71 billion company-compiled consensus. Including Yeezy sales in the prior-year quarter (2024: around € 200 million), currency-neutral revenues increased 8%, also below the 9% consensus.
Operating profit rose sharply to €736 million from €598 million and above the €694 consensus, with the operating margin improving to 11.1% from 9.3%. Gross margin increased to 51.8% despite headwinds from unfavorable exchange rates and higher U.S. tariffs.
Adidas now expects currency-neutral revenues for the full year to rise around 9%, compared with its previous forecast for high-single-digit growth and 10% consensus estimate cited by Bank of America.
Operating profit is expected to reach about €2.0 billion, up from prior guidance of €1.7 billion to €1.8 billion.
Kepler Cheuvreux analyst Jurgen Kolb said that "consensus estimates are already reflecting the new guidance, and thus, the market may take it in a first reaction as a slight disappointment."
The company said the improved outlook reflects “continued brand momentum, better-than-expected business performance, and successful efforts to partly mitigate additional costs from increased U.S. tariffs.”
"However, we see the combination of the Q3 2025 performance and the updated guidance as further proof of successful product lifecycle management," they added.
"We are seeing any share price weakness as a buying opportunity and reiterate our BUY rating at the EUR268 target price."
Separately, BofA analysts led by Thierry Cota said Adidas’ guidance revision marked “the first step in adidas’ rerating process,” which it expects to continue. "The stock’s risk premium is high," they noted, with its valuation having fallen to around 19 times forward earnings versus a 25–26 times historical average.
Adidas Chief Executive Bjørn Gulden said he was “extremely proud” of the company’s record quarter.
“Twelve percent growth for the adidas brand leading to total revenue of €6.63 billion is the highest we have ever achieved as a company in a quarter,” he said. Gulden added that Adidas remains optimistic heading into 2026, a year that will include the Winter Olympics and “the biggest Football World Cup ever.”
(Sam Boughedda contributed to this report.)