Adidas raises full-year sales forecast after second-quarter revenue beat
Strong World Cup-driven demand lifted quarterly sales, but €212 million in marketing spending and an unchanged profit outlook triggered a sharp share selloff.
Adidas lifted its full-year constant-currency sales growth forecast to 9% to 10% after second-quarter revenue rose 13% to €6.743 billion, helped by World Cup-related demand, but the company kept its operating profit target at about €2.3 billion as marketing and other pressures weighed on margins. Operating profit was €574 million, missing the analyst estimate of €616 million, while brand promotion spending totaled €212 million. The results disappointed investors who had expected stronger profit leverage from the sales beat, sending Adidas shares down roughly 17% intraday in Germany on July 30. Football product sales doubled, jersey sales quadrupled versus the previous tournament and apparel revenue rose as much as 35%, but footwear revenue increased only about 1%, with discounting and a tougher consumer backdrop still weighing on parts of the business. Analysts said the key issue now is whether Adidas can turn World Cup-driven demand into stronger second-half margins as tariffs, currency moves and competitive discounting continue to pressure costs.
- constant-currency sales growth: A measure of revenue growth that excludes the effects of exchange-rate movements, helping show underlying business performance.
- operating profit: Profit from core business activities before items such as interest and taxes, often used to assess operating performance.