Short description: Adidas delivered record quarterly revenue and operating profit in 2026, driven by strong demand for sportswear, running and football products. Apparel and direct-to-consumer sales led growth, highlighting changing consumer preferences and competitive dynamics across the European retail and global sportswear markets.
◉ They generated €7.25 billion in third-quarter revenue, an increase of 9% compared with the same period last year.
◉ Apparel revenue increased 19% on a currency-neutral basis, while Performance products grew 14%, led by running, training and football.
◉ Operating profit reached a quarterly record of €1.01 billion, up 37%, while direct-to-consumer sales increased 17%.
◉ Europe remained a weak spot, with revenue declining 4%, highlighting uneven consumer demand across major retail markets.
Apparel Leads the Recovery
The strongest contribution came from apparel, where currency-neutral revenue increased 19% during the quarter. Demand was broad-based across Performance and Lifestyle collections, with football, Originals, running and training products supporting sales.
The performance is significant because Adidas is generating growth from more than its footwear portfolio. Clothing has become an increasingly important part of its commercial strategy, helping the company diversify revenue and respond to changing consumer preferences.
Performance products recorded 14% growth, supported by running, training and football. Lifestyle revenue increased 3%, while accessories grew 5%.
Footwear revenue, however, remained flat overall. The company continued to manage wholesale deliveries cautiously amid elevated inventories and discounting across the wider sportswear market.
This distinction is important: Adidas is experiencing strong demand in selected product categories, but the recovery is not equally distributed across its entire portfolio.
Direct-to-Consumer Sales Gain Momentum
Adidas is also benefiting from a stronger direct-to-consumer business model.
Currency-neutral direct-to-consumer revenue increased 17% in the third quarter. E-commerce sales rose 18%, while sales through the company’s own retail stores increased 16%.
This development suggests that the brand is successfully attracting customers through its own distribution channels rather than relying exclusively on external retailers.
Direct sales can also provide greater control over pricing, product presentation and customer relationships.
The company’s focus on selling products at full price is particularly relevant in a retail environment where excessive discounting has pressured margins across the sportswear industry.
Wholesale revenue increased just 2%, reflecting Adidas’ cautious approach to shipments, particularly in Europe.
The difference between direct sales and wholesale performance highlights an important structural change in the company’s business model.
Europe Remains the Weak Spot
Despite strong international growth, Europe continues to present challenges.
Currency-neutral revenue in the region declined 4% during the third quarter to approximately €2.24 billion.
The weakness reflects elevated inventories, promotional activity and a more cautious wholesale environment. Retailers have been managing existing stock levels, limiting new orders and relying on discounts to move products.
Adidas expects the European business to improve during the fourth quarter, supported by delayed deliveries and stronger wholesale orders.
By comparison, several international markets delivered considerably stronger results:
| Market | Q3 revenue growth |
|---|---|
| Japan and South Korea | +19% |
| Latin America | +16% |
| Emerging Markets | +15% |
| Greater China | +13% |
| North America | +12% |
| Europe | -4% |
Currency-neutral year-on-year growth.
Greater China is particularly important for Adidas because it remains one of the world’s largest sportswear markets. The company’s double-digit growth there also contrasts with the difficulties experienced by some international competitors.
The geographical differences demonstrate that consumer demand is not moving uniformly across the global retail industry.
Record Profitability and Higher Guidance
Adidas’ third-quarter operating profit increased 37% to €1.008 billion, compared with €736 million in the corresponding period of 2025.
Net income from continuing operations rose 48% to €711 million.
Gross margin improved by 2.5 percentage points to 54.3%. However, the improvement was partly supported by approximately €200 million in US tariff refunds received during the quarter.
This is an important distinction when assessing the quality of earnings. The tariff refund provided a temporary benefit and should not be confused with recurring operating improvements generated through product demand and pricing.
Nevertheless, the company also benefited from healthy full-price sales and a more favourable distribution-channel mix.
Following its stronger results, Adidas increased its full-year 2026 operating profit outlook to approximately €2.5 billion, compared with its previous forecast of €2.3 billion.
The company expects currency-neutral revenue growth of between 9% and 10% for the full year.
It also plans to reinvest approximately €100 million in the fourth quarter into initiatives intended to improve future operating performance.
What Adidas Reveals About Consumer Spending
Adidas’ results provide an interesting indication of how consumers are allocating spending within the global retail market.
Demand for performance-oriented products remains relatively resilient, particularly in running, football and training. Consumers continue to purchase products associated with sport, fitness and active lifestyles, while some traditional lifestyle footwear categories face greater promotional pressure.
This trend is relevant beyond Adidas itself.
European retailers, sporting-goods distributors and competing brands are exposed to similar consumer trends. Companies such as Nike and Puma are operating in a market where brand strength, inventory management and the ability to maintain full-price sales are becoming increasingly important.
Recent industry analysis also points to performance footwear as an important growth driver, while elevated inventories and discounting continue to affect lifestyle footwear. retaildive.com+1
For European retail investors, Adidas’ results therefore offer two different signals: strong demand for selected sportswear categories, but continued pressure on parts of the wider consumer market.
The Outlook for 2027
The next challenge for Adidas will be maintaining growth while protecting profitability.
The company’s performance demonstrates that strong product demand, direct customer relationships and international expansion can support revenue growth even when certain regional markets remain under pressure.
However, several factors will influence its performance going forward:
- European consumer confidence and retail spending.
- Inventory levels and promotional activity across sportswear retailers.
- Competition from Nike, Puma and emerging Asian brands.
- Demand for premium running, football and training products.
- The ability to sustain margins without temporary financial benefits.
The third-quarter results establish a strong foundation for Adidas’ 2026 outlook, but the sustainability of its growth will become increasingly important as the company enters 2027.
For the wider European retail sector, the message is equally relevant: consumer demand remains selective, and companies with strong product portfolios, pricing discipline and effective distribution strategies appear better positioned to navigate an uneven market.
