Adidas Maintains Optimism Despite Industry Woes — Update

By Andrea Figueras

Adidas is confident in the future prospects of the sportswear industry despite current challenges.

There is a lot of debate about the state of the sector, and some believe that challenges lie ahead, Chief Executive Bjorn Gulden said during a call. "I strongly disagree."

Gulden's remarks come at a time when sportswear brands are dealing with harsh market conditions, including weak demand from young consumers due to inflationary pressures, fierce competition, and heavy promotions.

Still, the executive said that the industry's outlook for the medium and long term is "very positive," adding that people are exercising more, especially after the pandemic, and in countries like India and China.

"We feel that we have what it takes" to benefit from that, he said.

The statement comes as Adidas reported an increase in net profit for the third quarter and said that its recent investments in innovation and marketing were paying off.

The German group booked net profit of 706 million euros, equivalent to $787.4 million, for the quarter ending in September, up from 461 million euros in the prior-year period.

The company also confirmed preliminary results of 7.25 billion euros in sales and 1.01 billion euros in operating profit, which were disclosed a few days ago.

Analysts at J.P. Morgan said that the quarterly print was reassuring, with the main drag being a soft wholesale footwear business in Europe, as expected.

Shares were up 4% to 164.50 euros in European midday trading.

Adidas recorded a 4% drop in quarterly sales in Europe due to an uncertain consumer environment and elevated promotional activity.

Outside of Europe, momentum remains strong, in particular in North America, J.P. Morgan said. This is a sign that Adidas has been taking market share in an increasingly challenging market, the analysts said.

The company maintained its guidance for the year, which was upgraded last week. It expects to reach operating profit of around 2.5 billion euros and an increase in currency-neutral revenue of between 9% and 10% in 2026.

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

(END) Dow Jones Newswires

October 29, 2026 07:47 ET (11:47 GMT)