Adidas Profits Surge 54% Fueling $1.2B Stock Buyback
Synopsis
Adidas the German sportswear maker said consistent pricing allowed it to navigate the pressures from tariffs while avoiding heavy discounting. Operating profit surged, as growth was witnessed in all the markets. Though the retail landscape continues to be challenging and competition remains fierce, investors welcomed the buyback plan. Adidas will publish full results and its 2026 outlook in early March.
Adidas had a record year in 2025 and said it planned to repurchase up to €1 billion ($1.2 billion) in shares. The report comes as the group posted a robust update on Thursday, where it also benefited from stable pricing despite US tariffs hitting the industry, keeping discounts in check and boosting profits across all major markets.
Adidas Reports Record Revenue And Reveals Share Buyback Plan
Adidas said sales for 2025 rose 4.8 per cent to a record €24.8 billion, which was above most expectations despite currency pressures and a difficult retail environment. The German sportswear group also said it would start a share buyback of as much as €1 billion in 2026.
The buyback should start in February and will be paid for with what the firm said was strong cash flow generation next year. Adidas added that it planned to cancel the shares repurchased. The news accompanied initial earnings guidance ahead of the company’s full results and annual forecast, which it said it would provide in early March.
Adidas Beats Tariff And Retail Pressures With Strong Pricing
Adidas’ performance contrasts with that of many other retailers, which have struggled with anemic consumer demand and fears about tariffs. In October, the company cautioned that deep discounting could hurt full-price sales if tariffs spooked consumers.
Instead, Adidas said it was able to maintain high full-price sales and keep discounts in check. Bjorn Gulden, the chief executive, said his company’s “pricing discipline” had helped cushion margins during the year. The performance indicates Adidas has been more resilient than certain competitors when it comes to higher costs and changing customer behaviour.
Operating Profit Surges As Expansion Widens Web Abroad
Preliminary figures show that operating profit soared 54 per cent to €2.06 billion in 2025. All its markets posted double-digit growth, Adidas said, pointing to strong demand for its products overall.
Revenue in the fourth quarter climbed 1.9%, to €6.076 billion. Adidas said currency headwinds of approximately €1 billion during the year had an effect on reported sales. Analysts polled by LSEG had anticipated full-year sales of €24.95 billion and fourth-quarter revenue of €6.189 billion, making Adidas slightly below expectations, although still at record levels.
Stock Jumps on Buyback Despite Challenging Sector Environment
Adidas stock has fallen about 15% this year, mirroring broader strains in the retailing industry. Analysts highlight fierce competition from newer brands including On and Asics, as well as a recovery by US rival Nike. Nevertheless, Adidas shares rose by 2.4% in Frankfurt trading after news of the buyback plan and a robust profit increase, indicating that they viewed those developments positively.
Final Results And March Outlook Overall Results
Adidas will publish its full financial results and guidance for 2026 in early March. Investors are watching to see if sales growth can hold up in the face of continued economic uncertainty and a crowded field of competitors.
The planned share buyback in 2026 should act as a floor under the stock, but performance will hinge on consumer demand and how Adidas fares against competitors. At least for now, healthy sales and surging profits leave the company on a strong footing going into the new year.
KEY HIGHLIGHTS
- Adidas sees sales hit new highs with €24.8
- Profit from operations went 54% to €2.06bn
- Upto €1B Of shares would be repurchased in 2026
- Investors await full results and guidance in march
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