For the quarter ended June 30, 2026, Adidas reported net sales of €6.7 billion (~$8.90 billion), representing a 13 per cent increase year on year (YoY) in euro terms and 14 per cent on a currency-neutral basis, marking the highest quarterly revenue in the company’s history.
Adidas reported record Q2 FY26 revenue of €6.7 billion (~$8.90 billion), up 13 per cent year on year, driven by strong direct-to-consumer growth, robust apparel demand and FIFA World Cup momentum.
Operating profit rose to €574 million, while DTC sales increased 25 per cent.
The company raised its full-year revenue growth forecast to 9–10 per cent despite tariff and sourcing cost pressures.
“The business in the quarter was also unbelievably strong: 14 per cent growth in this volatile environment and an operating profit of €574 million (~$653.21 million) despite us spending €212 million (~$241.26 million) more in marketing underlines the current strength of both the brand and our products and shows what a fantastic job our people around the world are doing,” said Bjorn Gulden, chief executive officer, Adidas.
The operating profit rose 5 per cent to €574 million (~$763.92 million), while net income from continuing operations increased 6 per cent to €398 million (~$529.41 million). The gross margin improved by 0.8 percentage points to 52.5 per cent, supported by healthy full-price sales and a favourable channel mix. Basic and diluted earnings per share (EPS) from continuing operations reached €2.10 (~$2.39), Adidas said in a press release.
Global DTC momentum and regional performance
DTC channel delivered a 25 per cent currency-neutral revenue increase, with e-commerce up 27 per cent and own retail stores up 23 per cent. All regions posted double-digit DTC growth, including Europe, where overall sales rose 6 per cent.
China grew 15 per cent, North America 17 per cent, Latin America 28 per cent, and Japan/South Korea 18 per cent. Emerging Markets saw a 12 per cent increase, despite sales declines in some Middle Eastern countries. Wholesale revenues increased 6 per cent, reflecting a conservative sell-in approach in Europe due to heightened promotional activity.
Product category and margin analysis
Apparel revenues surged 35 per cent on a currency-neutral basis, led by Football and Originals, with strong contributions from Running, Training, Motorsport, and US Sports. Performance business revenues grew 39 per cent, driven by Football and Running, while footwear revenues edged up 1 per cent, and accessories climbed 20 per cent.
The gross margin expanded to 52.5 per cent, aided by full-price sales and a favourable channel mix, partially offset by higher freight and sourcing costs and increased US tariffs. Operating margin for the quarter was 8.5 per cent (2025: 9.2 per cent).
Guidance and outlook
Adidas raised its full-year 2026 guidance, now forecasting currency-neutral revenue growth of 9-10 per cent, up from a previous high-single-digit outlook. The company continues to expect operating profit to reach around €2.3 billion (~$3.06 billion).
The company said it will maintain elevated investments in marketing and distribution to support brand momentum and high-quality growth, leveraging a strong product pipeline and improved retailer relationships.
With robust DTC momentum, broad-based regional growth, and strong brand heat following the World Cup, Adidas remains confident in sustaining its above-industry growth trajectory through the remainder of 2026, despite ongoing macroeconomic and marketplace challenges, added the release.
Fibre2Fashion News Desk
