adidas (ADS) investor relations material

Executive summary

• Achieved record Q2 net sales of €6.7 billion, up 14% currency-neutral year-over-year, and record H1 sales of €13.3 billion, driven by strong global demand, World Cup momentum, and robust product launches.

• Gross margin improved to 52.5% in Q2, with EBIT for Q2 at €574 million and H1 EBIT at €1,279 million (9.6% margin), despite €212 million higher marketing spend.

• Net income from continuing operations increased 6% to €398 million in Q2 and 9% to €882 million in H1.

• Direct-to-consumer (DTC) execution was a key growth driver, with DTC channel up 25–27% and significant gains across all major markets.

• Announced CFO transition: Harm Ohlmeyer to be succeeded by Birgit Kretschmer, ensuring a smooth handover.

Financial highlights

• Q2 net sales: €6,743 million (+14% currency-neutral); H1 net sales: €13,335 million (+14% currency-neutral).

• Q2 gross profit: €3,540 million (52.5% margin, +0.8pp YoY); Q2 operating profit: €574 million (8.5% margin, -0.7pp YoY).

• Net income from continuing operations: €398 million in Q2 (+6% YoY); H1 net income: €882 million (+9% YoY); EPS: €2.10 in Q2, €4.81 in H1.

• Inventories increased 12–13% YoY, with 90% current/future season; cash and cash equivalents up 51% to €1,159 million.

• Dividend payout of €491 million and share buyback of €525–750 million in H1.

Outlook and guidance

• Upgraded FY 2026 revenue growth guidance to 9–10% (currency-neutral), with operating profit expected around €2.3 billion.

• Double-digit EBIT margin targeted for 2027–2028, with annual growth ambition of €2 billion.

• H2 growth expected at 6%, with potential upside if DTC trends continue; marketing spend to normalize in H2.

• Capital expenditure forecasted at €500 million; operating working capital guidance: 22–23% by year-end.

• Potential US tariff refunds (€250–300 million) not included in guidance.