adidas (ADS) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered double-digit net sales and operating profit growth, with robust brand momentum driven by successful product launches in both lifestyle and performance categories.

• All major markets reported growth, with particularly strong performances in Europe, Greater China, Latin America, and emerging markets.

• The company is executing a strategy focused on local market relevance, innovation, and expanding key franchises such as Samba, Gazelle, Spezial, and Superstar.

• Management remains confident in achieving midterm targets despite uncertainties from U.S. tariffs and macroeconomic headwinds.

Financial highlights

• Net sales grew 13% year-over-year to €6,153 million; adidas brand up 17% currency-neutral.

• Gross profit margin reached 52.1%, up 0.9pp year-over-year; adidas brand margin up 1.6pp.

• Operating profit (EBIT) surged 82% to €610 million, representing a 9.9% margin (+3.8pp year-over-year).

• Net income from continuing operations increased 155% to €436 million; basic EPS at €2.44.

• Cash and cash equivalents rose 32% to €1,432 million; net leverage ratio improved to 1.6x.

Outlook and guidance

• Full-year 2025 guidance confirmed: double-digit growth excluding Yeezy, high single-digit including Yeezy, and EBIT between €1.7–1.8 billion.

• No Yeezy revenues or profits expected in 2025.

• Guidance maintained despite U.S. tariff and macroeconomic uncertainties; management warns of potential negative pressure if tariffs increase.

• Confident in offsetting U.S. margin pressures with overperformance in other markets, which represent 80% of business.

• Midterm target of 10% EBIT margin by 2026 remains unchanged.