Adidas has raised its full-year operating profit forecast after reporting record quarterly revenue and operating profit, supported by “strong” full-price sales and a refund of US tariffs.
The German sportswear group’s revenue increased 9% to €7.25 billion (£6.3 billion) in the third quarter of 2026, up 7% on a currency-neutral basis. Operating profit rose 37% to €1.01 billion (£876 million), its highest quarterly level on record, while gross margin improved by 2.5 percentage points to 54.3%.
The improvement in gross margin was partly driven by a refund of around €200 million (£174 million) in US tariffs, the majority of which Adidas received during the quarter. Healthy full-price sales also contributed, although unfavourable currency movements continued to weigh on performance.
Adidas now expects full-year 2026 operating profit of around €2.5 billion (£2.2 billion), up from its previous forecast of €2.3 billion (£2 billion). The revised outlook includes the tariff refund and around €100 million (£87 million) earmarked for reinvestment in the fourth quarter.
Excluding the tariff refund, the company expects operating profit to be around €100 million (£87 million) higher than previously anticipated, reflecting improved profitability from its underlying growth. It maintained its forecast for currency-neutral revenue growth of 9-10% for the full year.
Chief Executive Bjørn Gulden said: “A great quarter for adidas. We achieved the highest revenue ever in a quarter with €7,252 million and the highest operating profit ever with €1,008 million. Our brand, our product and our people are our strength.”
Gulden said investment in marketing and innovation was supporting growth in football, running and training, alongside demand for new apparel collections. However, he acknowledged continued challenges in lifestyle footwear, where excess inventory and discounting are affecting the market.
The comments follow Adidas’ first-quarter results in April, when the company warned that higher US tariffs and unfavourable currency movements were expected to weigh on full-year operating profit by around €400 million (£348 million). At the time, it forecast operating profit of around €2.3 billion (£2 billion).
Adidas has also continued to invest in its product offering, including performance footwear and apparel, as it looks to sustain growth across categories while navigating a more heavily discounted lifestyle market.
The company will publish its final third-quarter results on 29 October.