Adidas AG ( (ADDYY) ) has released its Q1 earnings. Here is a breakdown of the information Adidas AG presented to its investors.
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Adidas AG, a global leader in the sportswear industry, is renowned for its innovative athletic footwear, apparel, and accessories, catering to a diverse range of sports and lifestyle markets worldwide.
In its latest earnings report, Adidas AG announced a strong performance for the first quarter of 2025, with revenues reaching €6,153 million, marking a significant increase from the previous year. The company’s robust growth was driven by a 17% increase in the Adidas brand’s sales, showcasing its strong market presence across all regions and channels.
Key financial highlights include a 13% rise in currency-neutral sales, a gross margin improvement to 52.1%, and a substantial increase in operating profit to €610 million. The company’s net income from continuing operations more than doubled to €436 million, reflecting its effective cost management and strategic investments in brand campaigns and partnerships. Despite the phase-out of the Yeezy business, Adidas maintained strong growth in its direct-to-consumer channels and wholesale operations.
Adidas continues to face uncertainties due to potential US tariffs and macroeconomic risks, which could impact its future financial performance. However, the company remains optimistic, focusing on expanding its product range and strengthening retailer relationships to drive further market share gains.
Looking ahead, Adidas reaffirms its full-year guidance, anticipating high-single-digit growth in currency-neutral sales and an increase in operating profit to between €1.7 billion and €1.8 billion, despite the challenges posed by external market conditions.