Adidas posts 14% sales growth

Adidas just showed that its turnaround is no longer a niche sneaker story. It is broad, profitable, and happening across channels. First-quarter 2026 sales rose 14% on a currency-neutral basis, operating profit climbed 16% to €705 million, and the brand kept growing even while management described the market as volatile and heavily discounted. But the interesting part is not just that Adidas beat expectations — it is how it did it, and why the company still sounds cautious. (adidas-group.com) ### Where did the growth actually come from? The big engine was direct-to-consumer. Adidas said DTC sell-out grew 22% globally, with e-commerce up 25% and its own retail stores up 19%. That matters because DTC growth usually carries better margins and gives the brand more control over pricing, product mix, and inventory. In plain English — Adidas sold more through places it controls, not just through third-party retailers. (adidas-group.com) ### Was this just one hot product? No — and that is what makes the quarter feel sturdier. Adidas said growth was broad-based across markets and categories, with especially strong momentum in football, running, training, and apparel. Apparel was a standout, which matters because Adidas has spent years being seen mainly as a footwear story. A healthier apparel business makes the brand less dependent on a few sneaker franchises. (adidas-group.com) ### Why does football matter so much here? Football is doing two jobs at once. It is driving near-term demand through World Cup-related product launches and marketing, and it is also helping Adidas look more like a performance brand again instead of a retro-lifestyle brand living off old hits. That shift matters because performance categories tend to refresh faster and can be easier to defend from discounting than a fashion sneaker once the hype cools. (wwd.com) ### What is this “defend newness” idea? Basically, Adidas is trying not to flood wholesale partners with too much product. Management said it pulled back in some wholesale areas to “defend newness” — meaning it wants fresher product, less clutter, and fewer markdowns. That sounds like a merchandising detail, but it is actually a margin strategy. If you ship less of the wrong product, you protect pricing power. The catch is execution — distribution centers, forecasting, and replenishment all have to be sharper when you run inventory tighter. (wwd.com) ### If the quarter was that strong, why not raise guidance? Because Adidas thinks the rest of 2026 gets messier. The company kept its full-year outlook for high-single-digit currency-neutral sales growth and about €2.3 billion in operating profit. It also warned that tariffs and currency moves could cut roughly €400 million from full-year operating profit, with the hit heavier in the first half. So the company is saying: the business is strong, but the environment is not stable enough to celebrate too early. (finance.yahoo.com) ### Did investors like the update? Yes. Reuters noted the shares jumped about 7% at the open after the results. That reaction makes sense — Adidas beat analyst expectations on both sales and profit, and it did it in a market management itself called heavily discounted. Investors tend to reward brands that can grow without obviously buying that growth through promotions. (whbl.com) ### So what is the real takeaway? Adidas looks healthier because growth is spreading beyond one sneaker cycle and because DTC is doing more of the work. But the company is also telling you this is not a clean, easy consumer story. Tariffs, currencies, and a promotional market can still eat into profits fast. The bottom line is simple — Adidas is executing better, but now it has to prove this quarter was the base of a durable brand recovery, not just a very good burst. (adidas-group.com)