Adidas Shares Tumble After Earnings Miss, Unchanged Profit Guidance Disappoint

By Andrea Figueras

Shares in Adidas fell after the German sportswear company reported lower-than-expected earnings for the quarter through June and chose not to lift its profit target for the full year.

The group booked quarterly operating profit of 574 million euros, or $658.2 million, up 5.1% from the same period a year earlier, but below analysts' estimates of 623 million euros, according to company-compiled consensus.

Adidas confirmed its operating profit forecast for the full year, which stands at around 2.3 billion euros--lower than the nearly 2.5 billion euros projected by analysts.

Both the earnings result and the lack of a raise in the profit guidance are likely to disappoint, RBC Capital Markets analyst Piral Dadhania wrote in a research note.

The stock was down 17% at 150.70 euros in European morning trading. Over the year to date, shares have fallen more than 10%.

Adidas said Thursday that marketing costs rose by more than 200 million euros, driven by spending on the FIFA World Cup.

"The miss is due to elevated marketing expenses which makes for a 'better quality' miss than what headline numbers might suggest," Dadhania said.

The company said its outlook doesn't reflect potential U.S. tariff refunds of between $250 million and $300 million that might be recoverable in the future.

For the second quarter, Adidas reported net sales of 6.74 billion euros, 14% higher on year excluding currency movements. Citing what it called a strong topline performance, the group now aims to book an increase in constant-currency revenue between 9% and 10% this year. This compares with a previous forecast of a high-single-digit percentage rise.

In absolute terms, Adidas reported a strong quarter, analysts at Deutsche Bank said. However, the results could disappoint investors against a rising tide of World Cup expectations, they said.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

July 30, 2026 04:50 ET (08:50 GMT)