Adidas reported record second-quarter net sales of €6.7 billion, a 14% currency-neutral increase, but operating profit rose just 5% to €574 million, missing analyst expectations of €623 million, as the company spent €212 million more on marketing tied to the FIFA World Cup than in the same period last year. The stock fell more than 18% in European trading Thursday, which would mark the steepest single-day percentage loss since its November 1995 IPO. The company raised its full-year revenue guidance to 9% to 10% currency-neutral growth, up from a prior high-single-digit forecast, while keeping its operating profit target at approximately €2.3 billion, excluding any benefit from possible U.S. tariff refunds estimated at $250 million to $300 million. Marketing and point-of-sale expenses totaled €924 million, or 13.7% of sales, up from 12.0% last year, driven by a campaign featuring Timothée Chalamet, Lionel Messi, Jude Bellingham, Lamine Yamal, and Bad Bunny. Direct-to-consumer revenue grew 25%, with e-commerce up 27% and own retail up 23%, while the performance business, led by football and running, grew 39% currency-neutral. Adidas also announced that Birgit Kretschmer will succeed Harm Ohlmeyer as chief financial officer at the end of 2026.
adidas AGOperating profit missed expectations due to higher World Cup marketing spend, causing stock to fall 18%.