German sportswear giant Adidas on Wednesday reported strong growth in the first quarter of 2026, with rising sales across key markets helping it maintain pricing stability despite weaker consumer sentiment.
However, the company warned of a “very volatile” and highly competitive retail environment.
Operating profit for the first three months of 2026 rose 16% to €705 million ($825 million), surpassing the €647 million forecast by analysts in a company-compiled poll. This compares with €610 million recorded in the same period last year.
Adidas net profit attributable to shareholders reached €482 million ($564 million) between January and March, marking a 13% year-on-year increase.
Footwear sales grew modestly by 4% in currency-adjusted terms, as demand for popular models like Samba and Gazelle slowed compared to last year. In contrast, apparel sales surged 31%, driven in part by localised designs such as Chinese New Year-themed track jackets.
Group sales rose 14% at constant exchange rates to €6.6 billion ($7.7 billion), supported by robust growth in North America and China. However, declines were recorded in parts of the Middle East, linked to geopolitical tensions, including the Iran conflict.
Adidas, which faces stiff competition from U.S. rival Nike and emerging brands, cautioned that market conditions remain challenging.
“The general retail environment is currently very volatile and heavily discounted in many markets, especially in lifestyle footwear,” CEO Bjorn Gulden said in a statement.
“We do, of course, hope the environment stabilises and that discounts will normalise, but this is unfortunately not in our control.”
The company maintained its full-year outlook, forecasting operating profit of €2.3 billion.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
