Adidas reported first-quarter operating profit of €705 million, beating analyst expectations as robust demand for apparel and performance categories helped the German sportswear group start 2026 on a strong footing.
The result was above the €647 million average estimate in a company-compiled analyst consensus and marked a 16% increase from €610 million a year earlier.
Net income from continuing operations rose 11% to €484 million, while operating margin improved to 10.7% from 9.9%.
The performance offers another sign that Adidas’s turnaround under Chief Executive Bjørn Gulden is holding up even as consumers remain cautious in parts of Europe and the wider global retail backdrop stays uneven.
Currency-neutral revenues rose 14% in the quarter, taking net sales to €6.6 billion.
The company said growth was broad-based, with double-digit direct-to-consumer increases in all markets reflecting strong sell-through trends.
Demand stays broad-based
A key feature of the quarter was the breadth of demand across categories and geographies.
Adidas said strong momentum in apparel was supported by healthy demand for football, running and training products, helping offset concerns about a more fragile consumer environment.
That mix matters because it suggests the group is benefiting not just from fashion-led interest, but also from core performance demand, which tends to be more resilient over time.
The results also indicate that Adidas has been able to protect pricing better than some investors feared.
Profit beat extends recovery story
The operating profit beat is notable not only because it exceeded consensus, but because it builds on Adidas’s stronger finish to 2025.
The company said underlying improvement to gross margin was more than offset by headwinds from currencies and tariffs, yet gross margin still came in at a healthy 51.1%.
That shows the business is absorbing external pressures while still expanding profitability, a combination likely to reassure investors after several volatile years for the brand.
Strong Q1 momentum supports outlook
Investors are now likely to focus on whether Adidas can sustain double-digit growth as the year progresses and whether margin gains can continue despite currency and tariff headwinds.
The strength of direct-to-consumer demand will remain important, as will the company’s ability to maintain momentum in apparel and performance footwear.
For now, the first-quarter print suggests Adidas has entered 2026 with more operating momentum than analysts had pencilled in.
In a market still sensitive to signs of consumer weakness, that combination of stronger sales, better profit and broad demand gives the group a solid platform for the rest of the year.
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