Adidas announced this Wednesday (29) operating profit and sales in the first quarter above expectations, driven by anticipated demand for football products for the World Cup, ahead of the FIFA (International Football Federation) tournament in June.
Adidas said it prioritized the early arrival of World Cup merchandise in its markets to avoid “a number of supply and transportation issues.”
“It was definitely the right decision to bring forward the arrival of inventory, especially for the World Cup,” Chief Financial Officer Harm Ohlmeyer told reporters on a conference call. “Without this, we would not have been able to grow 14% in the first quarter.”
Running gear also drove growth, with sales increasing by more than 10%. The Adidas brand is riding high after its ultralight running shoes helped Kenyan athlete Sabastian Sawe become the first person to run a marathon in under two hours in an official event at the London Marathon on Sunday.
Adidas shares rose almost 9% on Wednesday morning, driven by strong performance. Shares have fallen over the past year due to U.S. tariffs and consumer caution, and are still near their lowest level in more than three years.
“Overall, Adidas started 2026 strong, gaining market share globally while maintaining full-price sales, which gives us confidence it can achieve its 2026 sales and profit targets,” Telsey Advisory Group analysts wrote in a report to clients.
Adidas said the “discipline” in not overselling to retailers was crucial to avoiding the need to discount sneakers in a “very volatile” retail environment.
CEO Bjorn Gulden pointed to Europe as the market with the highest levels of discounts and a lot of uncertainty among consumers.
US rival Nike said earlier this month it was being “aggressive” with promotions to try to clear unsold stock.
Quarterly sales rose to €6.6 billion (R$38.5 billion), even as several Middle Eastern countries reported sales declines due to the war with Iran.
“Stores in many of these markets have been impacted by war activities. And of course, if there are bomb alarms in a market, that means the authorities advise not to open the stores,” Gulden told reporters, adding that the situation was changing every day.
Emerging markets, which include the Middle East, accounted for 13% of sales in the first quarter.
Quarterly operating profit rose 16%, to €705 million (R$4.1 billion), well above the €647 million (R$3.8 billion) projected by analysts in a survey carried out by the company.
Adidas’ footwear segment grew just 4% in currency-adjusted terms, with sales of the Samba and Gazelle models slowing compared to last year, while apparel sales jumped 31%, driven by local designs such as Chinese New Year sports jackets.
