Adidas AG reported better-than-expected earnings in the first quarter as consumers continue to snap up retro sneakers like the Samba in the face of growing economic uncertainty.
The German sportswear company posted an operating profit of €610 million ($692 million) in the quarter, according to a preliminary earnings announcement late Wednesday, exceeding the €545 million average of analyst estimates. Revenue of €6.2 billion was in line with estimates.
Adidas shares gained 2% in early Frankfurt trading Thursday. The stock had fallen about 11% so far this year through Wednesday, with investors concerned about the impact of President Donald Trump’s tariffs on the sporting goods sector. Like other sneaker brands, Adidas makes most of its products in Asia, a major target of Trump’s tariff threats.
Even so, Adidas continues to ride a two-year hot streak, with demand strong for classic shoe models that also include the Gazelle and thin-soled options like the Tokyo and Taekwondo. That’s helping the German brand gain back market share from Nike Inc., which has dominated the industry for decades but recently struggled.
Adidas posted double-digit sales growth “across all markets and channels,” the company said in the statement. It made no mention of forward guidance and will publish full first-quarter figures on April 29.
The performance suggests that Adidas may be able to keep its momentum with lifestyle products while gaining new consumer interest with its apparel offerings and running franchise, James Grzinic, an analyst at Jefferies, said in a note.
The company’s 2025 earnings targets now look conservative and analysts may soon raise their estimates, Piral Dadhania, an analyst at RBC Capital Markets, said in a note.
Adidas is no longer selling any products from its canceled Yeezy partnership with the entertainer Ye, which had boosted sales a year earlier.
Also read: Cyprus among EU’s least active book buyers, both online and off
Source: Bloomberg
