By Linda Pasquini and Helen Reid
April 29 (Reuters) – Adidas reported stronger than expected first-quarter operating profit and sales, despite what CEO Bjorn Gulden described as a “very volatile and heavily discounted” retail environment, especially in sneakers.
Adidas’s robust performance sent its shares up 7% at the open, as the company stuck with its 2026 outlook for high-single-digit sales growth and operating profit of 2.3 billion euros.
Adidas is riding high after its ultra-light racing shoes helped Kenyan athlete Sabastian Sawe become the first person to run a sub-two-hour marathon in an official race in the London Marathon on Sunday.
Among growth drivers, Adidas said sales in running were up more than 10%.
Increased demand for soccer shirts also helped, ahead of the FIFA World Cup 2026 starting in June, though Gulden said Adidas had faced “many supply and transportation issues” getting World Cup products to its markets.
“Today’s update could help shift the investor debate a little more constructively,” Jefferies analysts said in a note.
Adidas shares have fallen over the past year as the company faced U.S. tariffs and cautious consumers, and are still near their lowest level in more than three years.
The group’s sales rose by 14% in currency-neutral terms to 6.6 billion euros ($7.7 billion) in the quarter, even though several countries in the Middle East reported sales declines due to the Iran war.
Adidas said “discipline” in not selling too much to retailers was crucial to avoid sneakers having to be discounted.
U.S. rival Nike said earlier this month it was being “aggressive” with promotions as it tries to clear unsold stock.
Adidas makes just under two-thirds of its revenue via third-party retailers, but Gulden pointed to sales via Adidas’ own website up 25% and its own store sales growing 19%, compared with wholesale growth of 8%.
First-quarter operating profit rose by 16% to 705 million euros, well above the 647 million euros projected by analysts in a company-compiled poll, and up from 610 million euros a year ago.
Adidas footwear grew just 4% in currency-adjusted terms as sales of the Samba and Gazelle shoes slowed compared to last year, while apparel sales jumped 31%, boosted by local designs like the Chinese New Year track jackets.
Like many European retailers with significant sales in the United States, Adidas said it was negatively impacted by a stronger euro — taking around 350 million euros off its overall sales result in the quarter.
($1 = 0.8546 euros)
(Reporting by Linda Pasquini in Gdansk and by Helen Reid in London, editing by Ludwig Burger, Thomas Seythal, Shri Navaratnam and Jane Merriman)
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