The German sporting goods provider Adidas AG continued its growth course in the second quarter of the 2025 financial year. On Wednesday, the group announced that it was unexpectedly increasing its profit. However, sales development was burdened by negative exchange rate effects.
Negative currency effects put a strain on sales development
In the months of April to June, the group turnover reached an altitude of 5.95 billion euros, which corresponded to an increase of 2.2 percent compared to the previous year. According to the group, he had to accept “negative currency transfer effects” of around 300 million euros.
The plus owed the company to the continued strong demand for its main brand Adidas, whose revenues increased by twelve percent in the second quarter. Including the sales contributions of the Yeezy line, the sale of which was completed last year, they rose by eight percent.
In Europe, ADIDAS’s sales increased by 4.4 percent (currency -adjusted +4.1 percent) to just under EUR 2.00 billion, and in North America it increased by 2.8 percent (currency -adjusted +8.1 percent) to 1.34 billion euros. In Latin America, revenues grew by 0.1 percent (currency -adjusted +22.2 percent) to 673 million euros, in the Emerging markets segment by 1.7 percent (adjusted for currency +11.9 percent) to 762 million euros.
In Japan and South Korea, Adidas achieved an increase of 10.8 percent (currency -adjusted +12.6 percent) to 355 million euros. The proceeds only decreased in China. There, sales fell by 3.0 percent to 798 million euros. Current -adjusted, however, it rose by 2.1 percent.
The quarterly result increases again vigorously
Thanks to the growth of sales and an improvement in the gross margin from 50.8 to 51.7 percent, according to the company, which, according to the company, was “mainly due to less discounts and lower product and freight costs”, the “unfavorable currency effects and effects of the business mix”, the operational profit compared to the same period last year made 57.7 percent to 546 million euros Market expectations. The net profit, which is attributable to the shareholder, was almost doubled. It grew by 94.6 percent to 369 million euros.
In the entire first half of the year, the group turnover rose by 7.3 percent to EUR 12.1 billion. The net profit due to the shareholder jumped by 121.4 percent to 798 million euros.
Despite persistent uncertainties, the group reaffirms its annual forecasts
CEO Bjørn Gulden pulled a positive interim balance of the current year. “I am very satisfied and once again proud of what our team did both in the second quarter and in the first half of 2025,” he said in a statement. “We have grown continuously in the double -digit percentage range and have completed the first half of the year with growth of 14 percent for the Adidas brand.”
The CEO also warned of further efforts: “There is still a lot to improve,” emphasized Gulden. “We are far from having optimized our business model. We are convinced that it is the right strategy to be a global brand with a local mindset to be successful worldwide.”
With a view to the near future, the CEO referred to the continued existing risks: “The year has started excellently for us, and usually we would be very confident in our outlook for the overall year. In view of the global volatility and uncertainty, that would not be very prudent. We still do not know how high the tariffs for the United States will ultimately be.”
In view of the ongoing uncertainties, the group left its annual forecasts unchanged. For 2025, management continues to expect a currency -adjusted sales increase in the high single -digit percentage range. Two -digit growth in the core brand Adidas is expected. The operating result should be increased to 1.7 to 1.8 billion euros.
“At the moment we are confident that we will achieve this. Of course, this can change-even if the headwind is weaker than we are currently assuming,” explained Gulden, but also referred to possible stresses from the customs policy of the US government: “In the second quarter, we already had negative effects in double-digit millions, and the recent customs announcements in the US Increase million euros. “