Adidas shares dropped by more than 7% after the German sportswear company released a 2026 profit outlook that fell significantly short of market expectations. The company forecast an operating profit of approximately $2.7 billion (2.3 billion euros) for the year, implying a margin of less than 9%. This was lower than the 10% margin analysts had anticipated, and Adidas stated it now expects to achieve a margin of over 10% only by 2028.
Analysts expressed disappointment with the outlook. Jefferies analyst James Grzinic noted that the implied 9% margin was "well shy of expectations," while RBC Capital Markets analysts stated the profitability outlook was 15% below overall expectations. They questioned how conservative Adidas' EBIT guidance might be given its usual prudent approach at the beginning of the year.
Despite the negative profit forecast, CEO Bjorn Gulden's contract was extended through 2030, which failed to offset investor concerns. Chief Financial Officer Harm Ohlmeyer indicated that Adidas would have met the 10% margin target for the year if not for the impact of US tariffs and a weak dollar, which are projected to reduce 2026 earnings by $470 million (400 million euros). These factors, along with unfavorable currency swings, were cited as reasons for the disappointing outlook.
Adidas also presented mid-term targets, expecting currency-adjusted sales to grow at a high-single-digit rate from 2026 to 2028, with operating profit expanding by a mid-teens annual growth rate over the same period. They reported $28.86 billion (24.8 billion euros) in sales for 2025. Fourth-quarter sales and profit for 2025 slightly missed estimates, with sales at $7.1 billion (6.1 billion euros) and profit at $190 million (164 million euros) in constant currencies.
In the first quarter of 2026, Adidas reported a 14% growth in sales and an operating profit of $825 million (705 million euros), an increase of $117 million (100 million euros) from the previous year, with an operating margin reaching 10%. However, gross margin declined by 100 basis points due to currency effects and tariffs. Adidas also maintained its 2026 guidance for high-single-digit sales growth and approximately $2.7 billion (2.3 billion euros) in operating profit in its AGM, and announced a dividend increase and a $1.17 billion (1 billion euro) share buyback program.
