Adidas Posts Record Results, Shares Sink

Adidas just smashed records, notching €24.8 billion in revenue and a 54% profit jump, while promising shareholders a 40% dividend hike and a potential €1.5 billion in buybacks. But despite the numbers, the stock is stuck near 52-week lows. Investors are nervous about two big headwinds: new tariffs hitting in 2026 that could carve hundreds of millions off profits—particularly since 40% of Adidas footwear is made in Vietnam—and the looming loss of football sponsorships to Nike, including a 26-year Champions League partnership and even the German national team after 70 years.

Here’s the catch: Adidas is outpacing Nike on most operating metrics, showing double-digit growth in China and powering up its running and lifestyle lines like Adizero and Originals. Still, the upcoming tariffs, shifting football deals, and the need to spend more on marketing versus cutting costs all tighten the path forward. The big question is whether Adidas can defend its premium margins with smart pricing and innovation, or if rising costs and shifting brand visibility will eat into future growth.

Based on reporting from AD HOC NEWS, fashionunited.uk, and analyst insights from UBS, Jefferies, and Citi’s Monique Pollard.

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