Apparel growth reached 35%, but heavy marketing investment and slower footwear sales left investors questioning the durability of momentum after the World Cup.
Adidas has lifted its 2026 revenue forecast after reporting record second-quarter sales, supported by strong demand for football merchandise, performance products and retro-inspired apparel. Currency-neutral revenue increased 14% to €6.74 billion, exceeding the €6.63 billion expected by analysts.
The German sportswear group now expects full-year currency-neutral revenue growth of 9–10%, replacing its previous high-single-digit forecast. However, it maintained its operating-profit target at approximately €2.3 billion.
Apparel outpaces footwear
Apparel was the quarter’s strongest product division, with currency-neutral revenue rising 35%. Football and Originals delivered double-digit growth, while Running, Training, Motorsport and US Sports also expanded strongly.
Performance revenue increased 39%, driven by the FIFA World Cup, running products and motorsport. Accessories grew 20%, but footwear advanced only 1% as heavy retail discounting—particularly in European lifestyle footwear—continued to pressure the category.
Adidas said more products are being designed for local consumer preferences and, in several markets, sourced locally. This approach gives regional teams greater flexibility to replenish successful styles and introduce fresher merchandise.
Marketing bill weighs on earnings
Operating profit rose 5% to €574 million, below analysts’ consensus estimate of €623 million. Adidas invested an additional €212 million in World Cup-related marketing and activations during the quarter. Its shares subsequently fell almost 19%, their largest one-day decline since the company listed in 1995.
Direct-to-consumer sales increased 25%, including 27% growth in e-commerce and 23% in company-owned stores. Wholesale revenue rose a more restrained 6% as Adidas limited sell-in amid promotional market conditions.
Inventory moves higher
First-half revenue reached €13.34 billion, while operating profit increased 11% to €1.28 billion. Inventories rose 13% to €5.97 billion as Adidas prioritised World Cup product availability over short-term stock optimisation.
For apparel and footwear suppliers, the next signal will be whether Adidas maintains double-digit sell-through after the tournament while controlling inventories, discounting and sourcing costs. Strong apparel demand may support orders, but footwear softness and cautious wholesale buying could produce uneven sourcing patterns.
