Updated

Updated · Yahoo Finance · Jul 30

Adidas Raises 2026 Growth Forecast to 9%-10% as Q2 Sales Hit Record 6.74 Billion Euros

Updated

Updated · Yahoo Finance · Jul 30

Adidas Raises 2026 Growth Forecast to 9%-10% as Q2 Sales Hit Record 6.74 Billion Euros

Q: Why did Adidas shares plummet despite reporting its highest quarterly sales on record in 2026?

Adidas shares fell because investors focused on profits and guidance, not just record sales. While second-quarter revenue beat expectations and hit an all-time high, operating profit rose only 5% to about 574 million euros and missed analyst forecasts of roughly 623 million euros. The main drag was a sharp increase in spending. Adidas boosted marketing outlays by around 30%, largely tied to FIFA World Cup campaigns, which squeezed margins. Its operating margin was also weaker than expected, at about 8.5%. That told investors the company was having to spend heavily to support growth. The market was also unsettled by the fact that Adidas raised its sales outlook only slightly while leaving full-year operating profit guidance unchanged at around 2.3 billion euros. In other words, stronger revenue did not translate into a higher profit target. There were also concerns about the quality and sustainability of growth. Apparel was exceptionally strong, up 35%, but footwear — Adidas’ biggest category — grew only 1%. Management said lifestyle footwear was under pressure from heavy discounting, especially in Europe, its largest market. Europe itself grew just 6%, lagging other regions. That combination — a profit miss, margin pressure from World Cup marketing, unchanged profit guidance, and weak footwear growth in a promotional market — explains why the shares dropped sharply despite record sales.

3 articles · Updated · Yahoo Finance · Jul 30

6.74 billion euros in second-quarter sales marked Adidas' highest quarterly net sales ever, up 14% in currency-neutral terms and above the 6.63 billion euros analysts expected.
9%-10% full-year growth is now Adidas' forecast for 2026, lifted from high single digits after what CEO Bjorn Gulden called an "unbelievably strong" quarter; operating profit guidance stayed at 230 million euros.
35% apparel growth to 2.72 billion euros drove much of the surge, while footwear rose just 1% to 3.5 billion euros as lifestyle shoes faced heavy discounting, especially in Europe.
28% growth in Latin America led regional gains, ahead of 18% in Japan and South Korea, 17% in North America and 15% in Greater China; Europe, Adidas' largest market, lagged at 6%.
13.34 billion euros in first-half sales extends Adidas' sector-beating run, though the weak footwear trend may test whether its terrace-shoe momentum is fading.