adidas (ADS) Q2 2025 earnings summary

Executive summary

• Achieved strong momentum in Q2 and H1 2025, with double-digit currency-neutral growth in most regions and channels, significant market share gains, and robust brand momentum globally, excluding Yeezy revenues from the prior year.

• Q2 sales up 8% year-over-year (+12% currency-neutral), H1 sales reached €12.1bn, up 7–10% (+14% currency-neutral), with adidas brand up 12–14%.

• Operating profit for Q2 was €546m (9.2% margin, up nearly 60%), H1 EBIT reached €1.156bn (9.6% margin, up 70%), and net income from continuing operations increased 77% to €375m.

• Gross margin improved to 51.7% in Q2 and 51.9% in H1, up 0.9pp year-over-year, driven by lower costs and reduced discounting.

• Record-breaking performance at major sporting events and strong order books for Q3/Q4, with continued confidence in double-digit growth, especially outside the US.

Financial highlights

• Q2 2025 net sales reached €5,952m, up 8% year-over-year (+12% currency-neutral); H1 2025 net sales at €12,105m, up 7–10% (+14% currency-neutral).

• Q2 operating profit €546m (9.2% margin, +58–60%); H1 operating profit €1,156m (9.6% margin, +70%).

• Net income up 77% year-over-year; diluted EPS up 86–118% to €4.47; dividend per share €2.00 (+186%).

• Inventories increased 16% to €5,261m; cash and cash equivalents declined 54% to €768m.

• Adjusted net borrowings/EBITDA improved to 1.7x from 2.7x; S&P rating upgraded to A.

Outlook and guidance

• Full-year 2025 guidance: double-digit net sales growth (currency-neutral, excluding Yeezy), high single-digit reported growth, and operating profit of €1.7–1.8bn.

• No Yeezy revenues or profits expected in 2025; prior year included €650m in sales and €200m in profit from Yeezy.

• Tariff impact estimated at €200m increase in cost of goods sold for H2, with mitigation actions ongoing.

• FX headwinds from Argentina and Turkey expected to neutralize in H2; US dollar hedging to provide tailwind in 2026 and 2027.

• Management highlights increased uncertainty due to US tariffs and macroeconomic risks but sees upside potential from strong brand momentum and order book.