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Adidas business continues to perform well

Adidas business continues to perform well

Fashion United5 days ago
Adidas is currently on a roll. The brand with the three stripes is enjoying consistently high demand. Sales are increasing by double digits despite the current challenging environment. Adidas is particularly successful with its retro styles. "Samba, Gazelle" and "Stan Smith" are bestsellers worldwide. The first quarter performed better than expected. However, US customs policy prevented CEO Bjorn Gulden from following previous trends and raising his forecast for the current year.
Company expectations
For 2025, Adidas continues to expect a currency-neutral increase in sales in the high single-digit percentage range. The Adidas brand is expected to grow by double digits. Operating profit should increase to between 1.7 and 1.8 billion euros, up from 1.3 billion euros in the previous year.
In the second quarter, US tariffs are likely to have only a minor impact on US business. However, this impact is expected in the following quarter, Gulden recently announced. The Nike rival generates about 20 percent of its business in the US.
Above all, tariffs on key manufacturing countries such as Vietnam and China are likely to drive up costs. New statements are therefore expected on how Adidas will react to this. This was still open at the presentation of the figures for the first quarter at the end of April. However, Gulden did not rule out price increases.
Analyst expectations
Analysts are positive. Jorg Philipp Frey of Warburg Research anticipates another strong quarter with strong brand momentum and double-digit percentage growth. The margin improvements in recent quarters have reduced the risks for the outlook. Adam Cochrane of Deutsche Bank sees a chance that Adidas could again exceed expectations and become more optimistic looking ahead.
Baader Bank expert Volker Bosse was somewhat more cautious. He refers to the US tariffs. The trade agreement between the US and Vietnam is likely to increase costs for Adidas and ultimately sales prices in the US. This could depress sales there. Thanks to the great popularity of the Adidas brand, the lifestyle group is likely to achieve its financial targets, he estimates. Aneesha Sherman of the US analysis firm Bernstein also noted that the growth of sporting goods manufacturers in China is likely to remain subdued.
In a consensus provided by the news agency Bloomberg, analysts expect sales to increase to an average of 6.2 billion euros, up from 5.8 billion in the previous year. The operating result is likely to improve to around 503 million euros. Here, analysts are above Adidas' forecast for 2025, with an estimate of around two billion euros.
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