adidas (ADS) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 net sales of €6.63 billion, up 12% currency neutral, marking the highest quarter ever for the brand, with 14% growth year-to-date.

• Q3 operating profit rose 23% year-over-year to €736 million (11.1% margin), with nine-month operating profit at €1.9 billion (10.1% margin).

• Double-digit growth achieved across most regions, channels, and both Performance (+17%) and Lifestyle (+10%) segments.

• Net income for Q3 reached €485 million, with EPS from continuing operations at €2.57; nine-month net income up 52% to €1.3 billion.

• Strong brand momentum, global retail activations, and major product launches and collaborations contributed to performance.

Financial highlights

• Q3 gross margin at 51.8%, up 0.5 percentage points year-over-year; nine-month gross margin at 51.9%, up 0.8 points.

• Operating overheads fell below 30% of net sales for the first time since Q3 2021.

• Cash and cash equivalents at €1.03 billion, down 42% year-over-year, with adjusted net borrowings at €4.8 billion.

• Inventories rose 21% to €5.47 billion; average operating working capital at 21.9%–22% of net sales.

• Marketing spend at 12% of net sales, with increased investments in campaigns and partnerships.

Outlook and guidance

• Full-year 2025 guidance raised: operating profit expected at around €2.0 billion, with total company revenue up around 9% and double-digit growth for the brand (excluding Yeezy).

• No Yeezy revenues or profits expected in 2025.

• Tariffs expected to have a €120 million negative impact, partially mitigated by sourcing and selective price increases.

• FX tailwinds anticipated for 2026, with hedging in place for major currencies.

• Macroeconomic and geopolitical challenges, as well as global retail uncertainty, remain significant risks.