Adidas Q2 2025 profit surges, sales impacted by currency exchange
German sportswear provider Adidas AG continued its growth trajectory in the second quarter of the 2025 financial year. On Wednesday, the group announced an unexpectedly significant increase in profits. However, sales performance was impacted by negative currency effects.
Negative currency effects impact sales performance
In the months from April to June, consolidated group revenue reached 5.95 billion euros. This represents a 2.2 percent increase compared to the same quarter of the previous year. According to Adidas AG, the company had to absorb negative currency conversion effects amounting to approximately 300 million euros.
The company's growth was driven by continued strong demand for its main brand, Adidas. Its revenue increased by 12 percent in the second quarter on a currency-neutral basis. Including sales contributions from the Yeezy line, the sell-off of which was completed last year, revenue grew by 8 percent on a currency-neutral basis.
Adidas brand revenue in Europe increased by 4.4 percent (currency-neutral +4.1 percent) to just under 2 billion euros. In North America, it rose by 2.8 percent (currency-neutral +8.1 percent) to 1.34 billion euros. In Latin America, revenue grew by 0.1 percent (currency-neutral +22.2 percent) to 673 million euros. In the Emerging Markets segment, it increased by 1.7 percent (currency-neutral +11.9 percent) to 762 million euros.
In Japan and South Korea, Adidas achieved an increase of 10.8 percent (currency-neutral +12.6 percent) to 355 million euros. Revenue declined only in China, falling by three percent to 798 million euros. However, on a currency-neutral basis, it increased by 2.1 percent.
Quarterly results increase significantly again
Thanks to revenue growth and an improvement in the gross margin from 50.8 to 51.7 percent, operating profit increased by 57.7 percent to 546 million euros compared to the same period last year, exceeding market expectations.
Adidas AG stated this improvement was mainly due to fewer discounts and lower product and freight costs, which more than offset unfavourable currency effects and the impact of the business mix. Net income attributable to shareholders almost doubled, growing by 94.6 percent to 369 million euros.
In the first half of the year as a whole, consolidated group revenue increased by 7.3 percent to 12.1 billion euros. Net income attributable to shareholders jumped by 121.4 percent to 798 million euros.
Group reaffirms annual forecasts despite continued uncertainties
CEO Bjørn Gulden drew a positive interim balance for the current year. "I am very pleased and once again proud of what our team has achieved in both the second quarter and the first half of 2025," he said in a statement. "We have consistently grown in the double-digit percentage range and finished the first half of the year with 14 percent growth for the Adidas brand."
However, the CEO also called for further efforts. "There is still a lot we need to improve," Gulden stressed. "We are far from having optimised our business model. We are convinced that being a global brand with a local mindset is the right strategy to succeed worldwide."
Looking ahead to the near future, the CEO pointed to the continuing risks. "The year has started excellently for us, and normally we would now be very confident in our outlook for the full year. However, given the global volatility and uncertainty, that would not be very prudent. We still do not know how high the tariffs for the US will ultimately be."
In light of the ongoing uncertainties, the group left its annual forecasts unchanged. For 2025, management continues to expect currency-neutral revenue growth in the high single-digit percentage range. Double-digit growth is expected for the core Adidas brand. Operating profit is expected to increase to between 1.7 and 1.8 billion euros.
"We are currently confident that we will achieve this. Of course, this could change – also upwards, should the headwinds turn out to be weaker than we currently assume," explained Gulden. He also pointed to possible burdens from the US government's tariff policy. "We already had negative effects in the tens of millions in the second quarter, and the latest tariff announcements will increase the cost of our products in the US by up to 200 million euros in the further course of the year."
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