Adidas prelim Q3 operating profit rises as full-price sales support gross margin gains

adidas AG

Tue 17:47

Overview
Germany sportswear maker's preliminary Q3 revenue rose 9% yr/yr to record level
Q3 operating profit grew 37% to record level
Gross margin improved, aided by €200 mln US tariff refund and full-price sales
Co will publish its final set of financial results for Q3 on October 29 

Outlook
Adidas expects 2026 currency-neutral revenue growth between 9% and 10%
Company raises 2026 operating profit outlook to around €2.5 bln from €2.3 bln
Adidas to reinvest about €100 mln in Q4 to support future operating leverage

Result Drivers
TARIFF REFUND - €200 mln US tariff refund contributed to gross margin improvement
FULL-PRICE SALES - Healthy full-price sales supported gross margin gains
CURRENCY IMPACT - Unfavorable currency movements negatively affected results

Company press release: ID:nEQ7YGtfGa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
 
EUR 7.25 bln
 
Q3 Operating Profit
 
EUR 1.008 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the footwear peer group is "buy"
Wall Street's median 12-month price target for Adidas AG is €200.00, about 26.5% above its October 20 closing price of €158.10
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads
Oct 20 - Sweden's Profoto Q3 earnings improve on lower costs and refund of US tariffs
Oct 20 - German producer prices rise most in 3-1/2 years in September
Oct 19 - German industry has lost nearly half a million jobs since 2019, Ifo says

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)