The sportswear giant Adidas has announced an upward revision of its full-year revenue forecast, following a remarkable second-quarter performance. The company’s success can be largely attributed to the ongoing Men’s Football World Cup, which has significantly boosted sales of related merchandise. This positive trend has prompted Adidas to adjust its financial expectations for the remainder of 2026.
In the second quarter of 2026, Adidas reported a currency-adjusted revenue growth of 14% reaching a record €6.74 billion. This impressive figure surpassed analyst expectations of €6.63 billion. The company’s operating profit also saw a 5% increase amounting to €574 million, although this was slightly below the anticipated €623 million. Despite higher marketing expenditures, Adidas managed to maintain a strong financial position.
World Cup drives record sales
The Men’s Football World Cup, held in the United States, Canada, and Mexico has been a major catalyst for Adidas’ recent success. The company supplied kits to several prominent teams, including Germany, Argentina, Spain, and host nation Mexico. Adidas reported selling four times as many shirts and twice as many balls compared to the previous World Cup. CEO Björn Gulden highlighted the event’s impact, stating that it has contributed significantly to the company’s revenue.
Adidas’ strong performance was not limited to World Cup-related sales. The company experienced double-digit growth in all regions with notable increases in China (15%) and North America (17%). This global growth underscores Adidas’ robust brand momentum and strategic positioning in the sportswear market.
Financial outlook and challenges
In light of its strong second-quarter results, Adidas has raised its full-year revenue forecast. The company now expects a currency-adjusted revenue increase of between 9% and 10% up from its previous guidance of a high single-digit percentage growth. This adjustment reflects the company’s confidence in its ability to maintain momentum throughout the year.
However, Adidas faces several challenges that could impact its financial performance. The strong euro is weighing on the company, and there are concerns about potential increases in transport and material costs. Additionally, US tariff policies remain a point of contention, although some duties have been ruled unlawful in court. Investors are eagerly awaiting details on any potential refunds.
Despite these headwinds, analysts remain optimistic about Adidas’ prospects. Wendy Liu of JPMorgan believes that Adidas could continue to benefit from the weakness of its US rival, Nike and gain market share. Similarly, Robert Krankowski of UBS sees long-term growth opportunities in the running segment, highlighting the World Cup’s lasting positive effects.
Leadership transition and market dynamics
Adidas is also navigating a leadership transition, with CFO Harm Ohlmeyer announcing his departure after nearly 30 years with the company. Birgit Kretschmer currently the CFO of C&A will take over the role on January 1, 2027. This change comes at a time when Adidas is experiencing strong growth, and Kretschmer’s prior experience with the brand is expected to ensure a smooth transition.
As the global market continues to evolve, Adidas’ ability to adapt and capitalize on opportunities will be crucial. The company’s strong second-quarter performance and raised revenue forecast demonstrate its resilience and strategic agility in a dynamic and competitive industry.
