Adidas Reports Record Revenue Despite Tariff Challenges in the U.S.
Adidas AG posted record third-quarter revenue, even as U.S. tariffs created a challenging environment for the German sportswear giant.
On Wednesday, Adidas confirmed Q3 revenue of €6.63 billion ($7.73 billion), up 12% year-on-year — the highest in the company’s history. The figure excludes discontinued sales from the Yeezy brand.
Strong Profit Growth but Uneven Regional Performance
Operating profit rose 23% to €736 million, while net profit increased 4.1% to €461 million.
However, North American sales growth lagged other regions. Excluding Yeezy, Adidas brand revenue in North America rose 8% year-on-year on a currency-neutral basis, compared with 10% to 21% growth elsewhere.
The company said this weaker performance reflected U.S. market sensitivity to tariffs and ongoing economic uncertainty.
Tariffs and Economic Volatility Pose Risks
Adidas and other global sportswear makers have been preparing for the impact of President Donald Trump’s import duties, which affect manufacturing centers in Asia that produce much of the world’s footwear and apparel.
“The environment remains volatile with higher U.S. tariffs and growing uncertainty among both retailers and consumers,” CEO Bjorn Gulden said.
Despite these headwinds, Adidas stated that it has implemented cost-control measures and pricing strategies to offset the additional tariff burden.
Full-Year Outlook Reaffirmed
The company reaffirmed its full-year 2025 guidance, targeting an operating profit of around €2 billion and sales growth of roughly 9% compared with 2024.
While shares have not yet reacted strongly to the improved forecast, analysts see broad underlying strength.
Jefferies analyst James Grzinic noted that product and regional growth remain well balanced, with double-digit gains across all three major regions.
Bernstein analyst Aneesha Sherman added that the next major catalyst for Adidas will be its 2026 guidance, which could benefit from upcoming global sporting events.
