Strong sportswear demand and direct-to-consumer sales lifted Adidas’s third-quarter earnings, although a €200 million US tariff refund contributed materially to its margin improvement.
Adidas recorded its highest-ever quarterly revenue and operating profit in the three months to September 30, 2026, prompting the German sportswear group to raise its full-year earnings forecast.
Revenue increased 9% to €7.25 billion, or 7% on a currency-neutral basis, while operating profit climbed 37% to €1.01 billion.
Apparel Outpaces Footwear
Apparel revenue grew 19% in currency-neutral terms, led by Originals, football, running and training products. Football shirts and fan merchandise benefited from the 2026 FIFA World Cup and new club-kit launches.
Footwear revenue was flat as Adidas limited wholesale shipments amid elevated inventories and discounting, particularly in Europe.
Direct-to-consumer sales increased 17%, including 18% growth in e-commerce, while wholesale revenue rose just 2%.
Regional performance diverged. Currency-neutral sales increased 13% in Greater China, 12% in North America and 16% in Latin America, but declined 4% in Europe.
Tariff Refund Lifts Margins
Gross margin improved by 2.5 percentage points to 54.3%, supported by stronger full-price sales and approximately €200 million in US tariff refunds.
The refund means the margin improvement cannot be attributed entirely to recurring operational gains.
Operating margin reached 13.9%, up from 11.1%, while net income from continuing operations increased 48% to €711 million.
Full-Year Profit Forecast Raised
During January–September, Adidas generated €20.59 billion in revenue, up 10%, with apparel sales increasing 28% currency-neutral.
Inventories stood at €5.74 billion at quarter-end. The company now forecasts full-year currency-neutral revenue growth of 9–10% and operating profit of approximately €2.5 billion, compared with its previous €2.3 billion projection.
Adidas also plans to reinvest approximately €100 million during the fourth quarter.
For apparel and textile suppliers, stronger sportswear demand contrasts with weak footwear wholesale conditions.
The next indicators are fourth-quarter orders, European inventory clearance and whether underlying margins remain resilient without further tariff refunds.
