Adidas Posts Record Q3 Revenue of €7.3 Billion, Raises Full-Year Profit Guidance

Adidas reported preliminary third-quarter revenue of 7.3 billion euros ($8.1 billion), up 9% year over year and a quarterly record, alongside its highest-ever operating income of 1 billion euros, a 37% increase, as the company raised full-year operating profit guidance to 2.5 billion euros. Profits were boosted by roughly 200 million euros in tariff refunds during the quarter. Gross margin rose 2.5 percentage points to 54.3%, helped by the refunds and healthy full-price sales. Adidas also said it will reinvest 100 million euros in the fourth quarter to improve future operating leverage. The results contrast with rival Nike, where revenue fell 4% year over year to $11.2 billion. CEO Bjørn Gulden cited strength in soccer, running and training, while acknowledging footwear lifestyle remains challenged by excess inventory and discounting. Adidas expects currency-neutral revenue growth of up to 10% this year. Telsey Advisory Group noted the quarter marks 11 consecutive periods of high-single-digit or double-digit constant-currency growth.