Herzogenaurach, Germany — Adidas reported a 16% rise in first-quarter operating profit to €705 million ($825 million), as surging apparel sales offset slower demand for key footwear models in a challenging retail environment.
Okay News reports that net profit attributable to shareholders reached €482 million ($564 million) between January and March, marking a 13% year-on-year increase. The operating profit figure surpassed the €647 million forecast by analysts in a company-compiled poll, and compared with €610 million recorded in the same period last year.
Footwear sales grew modestly by 4% in currency-adjusted terms, as demand for popular models like Samba and Gazelle slowed compared to last year. In contrast, apparel sales surged 31%, driven in part by localised designs such as Chinese New Year-themed track jackets. Group sales rose 14% at constant exchange rates to €6.6 billion ($7.7 billion), supported by robust growth in North America and China. However, declines were recorded in parts of the Middle East, linked to geopolitical tensions, including the Iran conflict.
“The general retail environment is currently very volatile and heavily discounted in many markets, especially in lifestyle footwear,” Chief Executive Officer Bjorn Gulden said in a statement. “We do, of course, hope the environment stabilises and that discounts will normalise, but this is unfortunately not in our control.”
Adidas, which faces stiff competition from U.S. rival Nike and emerging brands, maintained its full-year outlook, forecasting operating profit of €2.3 billion.
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