Adidas AG has reported a standout performance for the second quarter of 2025, achieving a net income of €375 million, up 77% compared to the same period in 2024.
The results demonstrate the brand’s ability to deliver bottom-line growth by balancing strong top-line momentum with cost discipline and strategic brand investments. Despite headwinds such as foreign exchange volatility and U.S. tariff uncertainty, Adidas continues to capitalize on consumer demand, product innovation, and regional expansion.
With Q2 net sales of nearly €6.0 billion, Adidas is proving that it can grow profitably, even without the contribution of Yeezy-branded products, which accounted for around €200 million in revenue during Q2 last year.
Adidas’ Net Income Soars to €375 Million in Q2 2025
The most impressive takeaway from Adidas’ Q2 results is the substantial jump in net income from continuing operations, which rose from €211 million in Q2 2024 to €375 million this quarter, an increase of 77%. Basic and diluted earnings per share from continuing operations reached €2.03, compared to €1.09 in the prior year.
This performance came despite headwinds such as increased U.S. tariffs, negative currency translation effects of approximately €300 million, and the absence of Yeezy revenue. The strong result was driven by a combination of higher gross margin, tight cost control, and consistent brand momentum across markets.
Adidas recorded €5.95 billion in net sales for the quarter, reflecting a 12% increase in currency-neutral terms, or 8% when accounting for the loss of Yeezy sales. The company continues to generate momentum across categories and geographies, confirming the resilience of its core product offering and brand value.
Gross margin increased to 51.7%, up 0.9 percentage points year-over-year, despite adverse currency impacts and changes in business mix. This improvement was primarily driven by lower freight and product costs, along with reduced discounting, which enabled the brand to sell at stronger average prices.
Product Performance
In terms of category performance, Adidas saw widespread gains. Apparel grew by a strong 17%, reflecting growing consumer appetite for both performance and lifestyle clothing. Footwear revenue increased by 9%, led by high-performing franchises in Running, Training, and Basketball.
Running sales received a boost from the second-generation Adios Pro Evo and the new Boston 13, launched ahead of key marathons. The Adizero family continued to dominate the competitive running scene, delivering nearly 30% growth in running footwear alone.
Basketball footwear remained a highlight, with signature models such as the AE 1, Dame 9, and Harden Vol. 9 gaining popularity. The company also capitalized on global events like the UEFA Women’s EURO with targeted launches like the F50 Sparkfusion, a football boot designed specifically for female athletes.
Lifestyle and Innovation Powering Brand Equity
Adidas’ Lifestyle segment grew by 13%, fueled by continued demand for Originals and Sportswear collections. The Samba franchise, Superstar relaunch, and collaborations with icons like Pharrell Williams, Samuel L. Jackson, and Missy Elliott generated substantial brand heat.
Products such as the Climacool, featuring 3D-printed lattice technology, and Soft Lux, a new comfort-focused apparel line, highlight the brand’s commitment to innovation. Adidas successfully leveraged this momentum to expand into new silhouettes like the F50 Megaride, which made a splash during Paris Fashion Week.
Global Performance
Adidas’ localization strategy continues to yield strong returns. Net sales for the brand increased by double digits in all key markets, even in the absence of Yeezy contributions:
- North America grew by 15% (8% including Yeezy)
- Greater China rose by 11% (2% including Yeezy)
- Japan and South Korea each posted 15% gains.
- Latin America led with 23% growth.
- Emerging Markets increased 14%.
- Europe grew more modestly at 7%, impacted by last year’s UEFA EURO windfall.
- Emerging Markets increased 14%.
While the spotlight is on net income, Adidas’ operating profit also saw a remarkable 58% increase, rising to €546 million with a corresponding operating margin of 9.2%. This reflects the company’s ability to scale efficiently and manage operating expenses despite rising macroeconomic costs.
Marketing and point-of-sale expenses remained steady at 12% of net sales, with Adidas continuing to support campaigns like “You Got This” and “The Original”, along with high-impact event activations. Operating overheads fell by 5% to €1.83 billion, improving overall efficiency.
Adidas CEO Bjørn Gulden praised the team’s execution, stating that the company is almost already delivering our mid-term target of a 10% EBIT margin.
He emphasized the importance of the brand’s local-global strategy and reaffirmed the company’s ambition to lead in all key markets, with North America being a focus for future growth. However, Gulden also struck a note of caution, pointing to uncertainties such as new U.S. tariffs, which could add up to €200 million in costs in the second half of the year. Despite this, Adidas chose to maintain its full-year outlook, projecting €1.7–1.8 billion in operating profit for 2025.
Adidas reaffirmed its forecast for high-single-digit currency-neutral sales growth for the full year. This will be driven by broader product depth, stronger retail relationships, and impactful marketing.
Although tariffs and global economic uncertainty remain potential risks, the company’s strong first-half performance, growing order book, and operational efficiency offer a solid foundation for delivering on its guidance.
Notably, the outlook excludes any contribution from Yeezy, which accounted for €650 million in revenue and €200 million in profit in 2024.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
