Core Insights - Adidas reported record-breaking third-quarter results for 2025, with sales revenues increasing 12% to €6.63 billion and operating profit rising 23% to €736 million, marking the highest quarterly sales in the company's history [1] - The company raised its full-year guidance, now expecting currency-neutral revenue growth of around 9% and operating profit of approximately €2 billion, up from previous forecasts of high single-digit growth and profits between €1.7 billion and €1.8 billion [1] - Adidas' strategy focuses on being "a global brand with a local mindset," empowering local managers and establishing nine product creation centers worldwide, which has contributed to outperforming competitors like Nike and Puma [1][2] Financial Performance - In Greater China, sales rose 10% to €947 million, driven by localization efforts, with 60% of products designed in Shanghai and 95% sourced domestically [2] - Sales in Europe, Adidas' largest market, increased 12% to €2.33 billion, while Japan and South Korea saw an 11% rise; Latin America and Emerging Markets grew by 21% and 13%, respectively [3] - North America experienced the lowest growth at 8%, attributed to delivery issues with accessories, which limited category growth to just 1% [3][4] Market Challenges - The company is navigating the impact of tariffs on imported goods, initially estimating a €200 million profit impact, later revised to €120 million [5] - Adidas has reduced its reliance on Chinese sourcing for U.S. products to 3%-4% and is working with suppliers to mitigate tariff burdens [6] - Concerns remain regarding the indirect effects of tariffs on consumer behavior, particularly as inflation rises [7][8] Product Performance - Apparel sales increased by 16% to €2.38 billion, while footwear sales grew 11% to €3.75 billion [9] - The "terrace trend" in footwear has been pivotal for Adidas, with performance products growing at 17%, outpacing lifestyle categories [10][11] - The company is investing in maintaining the terrace trend through regular product launches and collaborations, while also expanding "low profile" offerings [12][13] Strategic Initiatives - Adidas is promoting cross-pollination between lifestyle and performance products, utilizing designs from one sport to influence another [14] - A new capsule collection for women inspired by retro aesthetics is set to launch, receiving positive feedback from the trade [15] - The company aims to capitalize on the streetwear trend by producing lifestyle footwear resembling soccer boots [16] Future Outlook - The goal is to stabilize growth and maintain a 10% operating profit margin, with ambitions for area managers to strive for market leadership [17] - While global dominance is not feasible, particularly in the U.S. market where Nike holds a significant advantage, the company maintains an ambitious outlook for future growth [18]