adidas (ADS) Q1 2026 earnings summary

Executive summary

• Achieved 14% currency-neutral revenue growth in Q1 2026, reaching €6.6 billion, with strong D2C and e-commerce momentum and robust growth across all regions and channels.

• Operating profit rose 16% to €705 million, and net income from continuing operations increased 11% to €484 million, with EPS at €2.70.

• Gross margin was 51.1%, down 1.0pp year-over-year due to FX and tariff headwinds, but underlying margin improved.

• Performance categories (Football, Running, Training) and apparel saw strong double-digit growth, while lifestyle footwear faced headwinds from discounting and lack of newness.

• Continued investment in innovation, marketing, and local market adaptation, with a focus on long-term brand strength.

Financial highlights

• Net sales grew 14% currency-neutral (7% nominal) to €6,592 million, with D2C up 22%, e-commerce up 25%, and wholesale up 8%.

• Operating profit margin improved to 10.7%, with operating profit of €705 million.

• Gross profit reached €3,369 million (51.1% of net sales), down 1.0pp year-over-year.

• Net income from continuing operations was €484 million, up 11% year-over-year.

• Inventories increased 14% to €5,788 million, mainly due to strategic early receipts and supply chain resilience.

Outlook and guidance

• Maintains full-year guidance, targeting high-single-digit currency-neutral sales growth and operating profit of around €2.3 billion, with gross margin improvement expected in H2 as FX headwinds ease.

• Targeting EBIT margin above 10% by 2027, with annual sales growth of approximately €2 billion.

• Marketing spend to increase in Q2 to leverage World Cup visibility.

• Expects high single-digit growth in 2027 and 2028, driven by both performance and lifestyle categories.