Adidas reported a strong fourth quarter on Wednesday as part of a record year of revenue in 2025 in addition to key moves in its executive ranks.
The German sportswear maker said in its earnings report that it saw 11 percent growth in the quarter on $7 billion as part of a $29 billion record revenue but also cautioned that 2026 would see a slow down in sales and single digit output due to economic factors like tariffs.
“Driving double-digit growth in the fourth quarter despite all the external turbulence, and more than doubling our operating profit in the quarter made the year end very well and made 2025 much better than we had planned and expected when the year started,” Adidas CEO Bjorn Gulden said in the report. “The double-digit growth in all markets and all channels is of course very pleasing, but even more important is that this is quality growth. Our markets have been very good at managing that the right product in the right amount has been sold in their markets and that we have managed to keep full-price sell-throughs high and discounts under control.”
In the fourth quarter, Adidas doubled its operating profit to $190 million and saw double-digit increases in direct-to-consumer sales all markets. Running footwear powered its overall footwear showing with a 35 percent boost fueling a 5 percent overall rise in the category, while apparel saw a 20 percent jump.
The company also revealed that it would extend Gulden’s contract until December 1 2030 in light of a turnaround he continues to lead at the brand within the last three years.
“With his long-standing experience, his deep understanding of our industry, his strong leadership, and his clear focus on quality growth, Bjørn Gulden drove the successful turnaround of adidas during the past three years,” Thomas Rabe, Adidas supervisory board chairman said. “Under his leadership, adidas has made tremendous operational and financial progress in a challenging environment, laying a strong foundation for further sustainable top-and bottom-line growth in the future.”
Global human resources will also stay on board, with her contract being extended until December 31, 2031.
Meanwhile, the supervisory board said it would seek to elect Nassef Sawiris as its chairman at its upcoming annual meeting in a move to transition to a successor for Rabe, whose planned exit comes later this year. Rabe has served on the on the board since 2019 and moved into the chairman role the following year.
Adidas initially announced its record revenue for 2025 in late January and would launch a $1.2 billion stock buyback program that would be fueled by last year’s cash flow. The company will then cancel the repurchased shares.
Looking ahead, Gulden believes Adidas will still make marketshare inroads in the single digits in 2027 and 2028, with the latter seeing an operating margin of more than 10 percent.
“To achieve this, our focus will continue to be consumer-oriented and to be the global sports brand with a local mindset,” Gulden said. “We have the scale, the innovation, the product pipeline, the marketing concepts, and the talented people to achieve this. We now have to further reduce complexity, put decision-making closer to the consumer and where the knowledge sits and make sure we optimize our systems, processes and organization to the new reality in the global marketplace.”
