- Adidas reported a strong second quarter, with an operating profit of €546 million, up 58% year-over-year, surpassing the estimated €503.1 million.
- Gross profit came in at €3.08 billion, a 4% increase from the previous year, but slightly below the estimated €3.19 billion.
- The company’s gross margin improved to 51.7%, exceeding last year’s 50.8% and the estimated 51.5%.
- Operating margin rose to 9.2%, higher than last year’s 5.9% and the expected 8.08%.
- Total revenue for the quarter was €5.95 billion, a 2.2% year-over-year increase, though below the expected €6.21 billion.
- European revenue grew by 4.4% to €2.00 billion, slightly below the estimated €2.09 billion.
- North America saw a 2.8% rise in revenue to €1.34 billion, surpassing the estimate of €1.32 billion.
- Sales in Greater China dropped by 2.9% to €798 million, falling short of the projected €869.3 million.
- Revenue from emerging markets increased by 1.7% to €762 million, below the estimated €826 million.
- Latin America maintained stable revenue at €673 million, not reaching the estimated €695.6 million.
- Net income from continuing operations rose by 78% to €375 million, higher than the projected €340.2 million.
- Pretax profit increased by 61% to €488 million, beating the estimate of €463.5 million.
- Cost of sales slightly increased by 0.4% to €2.88 billion, lower than the expected €3.01 billion.
- Other operating expenses decreased by 3.3% to €2.55 billion, better than the estimated €2.71 billion.
- Inventories grew by 16% year-over-year to €5.26 billion, exceeding the forecasted €4.9 billion.
- Adidas ended the period with a net cash balance of €768 million, a 54% decrease from last year.
- The company maintains its forecast for an operating profit of between €1.7 billion and €1.8 billion for 2025, though this is below the previous estimate of €2.01 billion.
- CEO Bjørn Gulden noted potential cost increases of up to €200 million in the US due to tariffs, but remains confident in delivering the yearly forecast.
adidas on Smartkarma
On Smartkarma, Baptista Research has provided insightful analyst coverage on adidas. In their report titled “Adidas – Can Hyper-Localization & Lean Supply Chains Turbocharge Profits?“, they highlighted the strong performance of Adidas AG in the first quarter of 2025. The report mentions key figures such as a 13% increase in net sales currency-neutral and a 17% increase in the Adidas brand sales, excluding the discontinued YEEZY line. With a significant improvement in gross profit and effective market operations, the report suggests that robust product launches and lean supply chains have contributed to Adidas’ success.
Baptista Research‘s bullish sentiment on adidas reflects the optimism surrounding the company’s performance, emphasizing the potential for hyper-localization and efficient supply chains to drive profits. Their in-depth analysis underscores the positive outlook for Adidas AG, with a focus on sustainable growth strategies and market competitiveness. Through Smartkarma, investors can access valuable research insights from top independent analysts like Baptista Research to make informed investment decisions regarding companies like adidas.
A look at adidas Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Adidas AG, a renowned manufacturer of sports shoes and equipment, has a mixed outlook for the long term based on Smartkarma Smart Scores analysis. With a value score of 2, Adidas is considered to have moderate value relative to its market price. The growth score of 3 reflects a positive outlook for the company’s future expansion and revenue potential. In terms of resilience and momentum, Adidas scores a solid 3, indicating its ability to withstand economic challenges and maintain steady growth momentum. Overall, while the company may not be undervalued, its growth prospects, resilience to market conditions, and positive momentum suggest a promising outlook for the future.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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