Revenue in the first quarter (Q1) ended March 31 rose 14 per cent year-over-year (YoY) to €6.6 billion (~$7.72 billion). The DTC business remained a key growth driver, with sales up 22 per cent, led by 25 per cent growth in e-commerce and 19 per cent in own retail. Gross margin stood at 51.1 per cent despite headwinds from currencies and higher US tariffs.
Adidas has reported a strong Q1 2026, with revenue rising 14 per cent YoY to €6.6 billion (~$7.72 billion), driven by robust DTC growth and broad-based demand.
Operating profit increased 16 per cent to €705 million (~$824.85 million).
Apparel and performance segments led gains.
The company expects high single-digit sales growth and ~€2.3 billion (~$2.69 billion) operating profit in 2026.
“I am very proud of the results our teams delivered in the first quarter. Our teams have worked very hard to optimise our product offer, our marketing, and our activations market by market. That all markets recorded double-digit growth in their DTC business is very rare, and it is a proof that our teams are doing a lot of right things,” said Bjorn Gulden, Adidas CEO.
Profit growth and segment performance
The company’s operating profit increased 16 per cent to €705 million (~$824.85 million), while net income from continuing operations rose 11 per cent to €484 million.
Growth remained steady across segments, with footwear revenues increasing 4 per cent, building on more than 20 per cent growth in the prior-year quarter. Gains were led by Running and Training, alongside continued traction in lifestyle footwear franchises, Adidas said in a press release.
Apparel revenues rose 31 per cent, supported by differentiated and locally relevant collections, enabling the company to expand brand momentum and market share across divisions. This was driven by gains in Football, Running, Training, Motorsport, and Originals, while accessories grew 13 per cent during the quarter.
Category momentum and regional trends
Performance revenues increased 29 per cent in Q1. In Football, momentum was supported by the FIFA World Cup 2026 away jersey launch in March, alongside continued demand for home kits and the official match ball Trionda.
“The general retail environment is currently very volatile and heavily discounted in many markets, especially in lifestyle footwear. The discipline of not overselling into retailers is therefore currently crucial,” added Gulden.
Regionally, currency-neutral sales expanded across major markets, including North America (12 per cent), Greater China (17 per cent), Latin America (26 per cent), and Japan/South Korea (23 per cent), while Europe recorded 6 per cent growth.
Innovation pipeline and outlook
Highlighting product innovation, Gulden said, “Our pipeline of new and innovative products is strong,” referencing developments such as the Adizero Adios Pro Evo 3 and upcoming 3D-printed footwear.
The brand introduced Hyperboost Edge, designed for everyday runners seeking comfort and high energy return, which has received positive feedback from consumers and retailers. In addition, Adidas launched Supernova Rise 3 Adaptive, its first performance running shoe designed by and for adaptive athletes and people with disabilities.
In Lifestyle, revenues rose 6 per cent during the quarter, driven by Originals and Sportswear.
Looking ahead, Adidas expects currency-neutral sales to increase at a high single-digit rate in 2026, reflecting growth of around €2 billion in absolute terms, despite macroeconomic challenges and elevated uncertainty. Operating profit is projected to reach around €2.3 billion (~$2.69 billion).
“We will continue to focus on keeping our discounts under control, deliver fresh and innovative products to the markets, and use sports events and other culturally relevant activations to connect with consumers,” Gulden said.
Adidas will continue to invest in marketing and sales activities to sustain brand momentum and drive high-quality growth beyond this year, including partnerships with teams and athletes, activations across global and local sports, support for product launches, and initiatives to strengthen retailer relationships, added the release.
Fibre2Fashion News Desk (SG)
