Revenue in the first quarter (Q1) ended March 31 rose 14 per cent year-over-year (YoY) to €6.6 billion (~$7.72 billion). The DTC business remained a key growth driver, with sales up 22 per cent, led by 25 per cent growth in e-commerce and 19 per cent in own retail. Gross margin stood at 51.1 per cent despite headwinds from currencies and higher US tariffs.

Adidas has reported a strong Q1 2026, with revenue rising 14 per cent YoY to €6.6 billion (~$7.72 billion), driven by robust DTC growth and broad-based demand.
Operating profit increased 16 per cent to €705 million (~$824.85 million).
Apparel and performance segments led gains.
The company expects high single-digit sales growth and ~€2.3 billion (~$2.69 billion) operating profit in 2026.

“I am very proud of the results our teams delivered in the first quarter. Our teams have worked very hard to optimise our product offer, our marketing, and our activations market by market. That all markets recorded double-digit growth in their DTC business is very rare, and it is a proof that our teams are doing a lot of right things,” said Bjorn Gulden, Adidas CEO.

Profit growth and segment performance

The company’s operating profit increased 16 per cent to €705 million (~$824.85 million), while net income from continuing operations rose 11 per cent to €484 million.

Growth remained steady across segments, with footwear revenues increasing 4 per cent, building on more than 20 per cent growth in the prior-year quarter. Gains were led by Running and Training, alongside continued traction in lifestyle footwear franchises, Adidas said in a press release.

Apparel revenues rose 31 per cent, supported by differentiated and locally relevant collections, enabling the company to expand brand momentum and market share across divisions. This was driven by gains in Football, Running, Training, Motorsport, and Originals, while accessories grew 13 per cent during the quarter.

Category momentum and regional trends

Performance revenues increased 29 per cent in Q1. In Football, momentum was supported by the FIFA World Cup 2026 away jersey launch in March, alongside continued demand for home kits and the official match ball Trionda.

“The general retail environment is currently very volatile and heavily discounted in many markets, especially in lifestyle footwear. The discipline of not overselling into retailers is therefore currently crucial,” added Gulden.

Regionally, currency-neutral sales expanded across major markets, including North America (12 per cent), Greater China (17 per cent), Latin America (26 per cent), and Japan/South Korea (23 per cent), while Europe recorded 6 per cent growth.

Innovation pipeline and outlook

Highlighting product innovation, Gulden said, “Our pipeline of new and innovative products is strong,” referencing developments such as the Adizero Adios Pro Evo 3 and upcoming 3D-printed footwear.

The brand introduced Hyperboost Edge, designed for everyday runners seeking comfort and high energy return, which has received positive feedback from consumers and retailers. In addition, Adidas launched Supernova Rise 3 Adaptive, its first performance running shoe designed by and for adaptive athletes and people with disabilities.

In Lifestyle, revenues rose 6 per cent during the quarter, driven by Originals and Sportswear.

Looking ahead, Adidas expects currency-neutral sales to increase at a high single-digit rate in 2026, reflecting growth of around €2 billion in absolute terms, despite macroeconomic challenges and elevated uncertainty. Operating profit is projected to reach around €2.3 billion (~$2.69 billion).

“We will continue to focus on keeping our discounts under control, deliver fresh and innovative products to the markets, and use sports events and other culturally relevant activations to connect with consumers,” Gulden said.

Adidas will continue to invest in marketing and sales activities to sustain brand momentum and drive high-quality growth beyond this year, including partnerships with teams and athletes, activations across global and local sports, support for product launches, and initiatives to strengthen retailer relationships, added the release.

Fibre2Fashion News Desk (SG)

The world is now moving away from China and the subsequent ‘China +*’ sourcing strategy into ‘China plus multiple sourcing’ options to ensure diversification. The FTA with New Zealand now opens India to trade at a vast level, and levelling the trade dynamics, which have been skewed towards China and Bangladesh.

Sravanti Kancharla, executive director of Supriya Spinning Mills Pvt Ltd and vice chairperson of the women entrepreneurs wing at AP Chamber of Commerce & Industry Federation in an interview with Fibre*Fashion said, “Although New Zealand is not a high-volume market, but it is a high-value market and it actually helps in India**;s positioning as a global manufacturing and export hub.”

The Federal Open Market Committee voted to hold the benchmark funds rate in a range between 3.5-3.75 per cent.

The committee seeks to achieve maximum employment and inflation at 2 per cent rate over the longer run.

The US Federal Reserve (Fed) has left its benchmark interest rate unchanged for the third meeting in a row amid a solid expansion of economic activity, persistent inflation, low job gains, and little change in unemployment rate in recent months.
Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook.

Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook, the Fed said in a press release.

Fed chair Jerome Powell, due to step down in mid-May, told a press conference that he plans to continue to serve on the board of governors until an investigation of the Fed is “well and truly over with transparency and finality.” He may remain governor until 2028. 

Fibre2Fashion News Desk (DS)