Adidas records strong revenue growth and initiates share buyback

German sportswear group Adidas has reported strong preliminary financial results for the full year 2025, supported by double-digit growth across all market segments. The Herzogenaurach-based company reached a record revenue level of 24.81 billion euros (29.58 billion dollars), representing an increase from 23.68 billion euros in 2024. This growth was achieved despite a negative currency translation impact exceeding one billion euros.

For the full year, currency-neutral revenues for the Adidas brand increased by 13 percent for the second year in a row. When accounting for Yeezy sales from the prior year, which totaled approximately 650 million euros in 2024, currency-neutral revenues rose by 10 percent. The company gross margin improved by 0.8 percentage points to 51.6 percent in 2025, despite pressures from higher tariffs and unfavorable currency developments.

Operating profit for the full year 2025 saw a substantial increase, rising by more than 700 million euros to reach 2,06 billion euros. Consequently, the operating margin improved by 2.6 percentage points to 8.3 percent, up from 5.6 percent in the previous year.

Fourth quarter performance and share buyback launch

During the fourth quarter of 2025, currency-neutral revenues for the Adidas brand increased by 11 percent. Including the impact of previous Yeezy sales, fourth quarter currency-neutral revenue growth was 10 percent. In euro terms, quarterly revenues reached 6.08 billion euros compared to 5.97 billion euros in the same period of 2024.

The quarterly gross margin improved by 1 percentage points to 50.8 percent. Notably, operating profit for the fourth quarter more than doubled, reaching 164 million euros compared to 57 million euros in the prior year.

Following these results, the Adidas executive board has decided to launch a share buyback program. Starting in early February, the group plans to repurchase shares worth up to one billion euros throughout 2026. These shares are intended to be cancelled and will be financed through anticipated strong cash flow generation in 2026.

Strategic outlook and quality growth

Adidas chief executive officer, Bjørn Gulden, attributed the performance to "quality growth," noting that the group managed to maintain high full-price sell-throughs while keeping discounts under control. Gulden highlighted that the 51.6 percent gross margin, excluding Yeezy, represents a historically high level for the brand.

The CEO expressed confidence in future top-line and bottom-line growth across segments including sport, comfort, lifestyle, and fashion. Gulden also noted the importance of upcoming major sporting events, including the Olympic and Paralympic Winter Games in Italy and the FIFA World Cup.

Final financial results for 2025 and financial guidance for 2026 are scheduled for publication on March 4, 2026.