Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Adidas said it expects sales growth to slow this year and forecast lower-than-expected operating profit, even as Germany’s biggest sportswear group set out its ambition to be the leading brand in most markets worldwide.
Shares in the group fell 3 per cent on Wednesday after it said that it expected sales to increase by 10 per cent this year, after notching up 12 per cent growth in 2024.
The company said it expects operating profit of up to €1.8bn for the year. That compares with €1.3bn last year but is well short of the €2.1bn expected by analysts.
Since chief executive Bjørn Gulden took over in 2023, Adidas has tended to issue conservative market guidance and raised its annual forecasts three times last year.
Gulden said the German group has “the clear ambition of being [number] 1” in all markets except North America, as US rival Nike struggles with slowing sales. He added that the company wanted to be “more local”. Adidas is cutting up to 500 jobs in its German headquarters to give more autonomy to regional managers and work more closely with retailers.
Adidas shares have risen 28 per cent over the past year, while Nike’s shares have fallen 21 per cent.
Gulden said Adidas was making progress on its path to become a “healthy company” with a target for a 10 per cent operating margin by 2026. The company’s forecasts suggest that its operating margin could reach 6.8 per cent this year, according to Citi analysts.
Adidas benefited from strong demand for its classic trainers such as the Samba and Gazelle, with double-digit sales growth in all regions except for North America last year compared with 2023. In North America, revenues fell 2 per cent because of lower sales of the discontinued Yeezy brand.
Adidas ended its partnership with Ye, formerly known as Kanye West, in 2022 over the rapper and designer’s antisemitic comments, wiping out €1.2bn in annual sales and €500mn in operating profit. Adidas said that it had sold the last Yeezy items at the end of 2024 and that sales had started to recover, with 15 per cent year-on-year growth in North America in the fourth quarter of 2024.
The company on Wednesday announced a dividend of €2 a share, suggesting a payout of €360mn to shareholders compared with €130mn last year.
