Core Insights - Adidas is experiencing a significant recovery after reporting its first loss in 30 years in 2023, with a projected return to profitability in 2024 and double-digit sales growth across all business lines and markets in the first half of 2025 [2][4] Financial Performance - In Q3, Adidas reported a revenue increase of 12% year-on-year to €6.6 billion, achieving the highest quarterly revenue in its history [2] - The gross margin reached 51.8%, and operating profit increased by 23% to €736 million, raising the operating profit margin for the first nine months to 10.1%, exceeding the CEO's initial target [4] - Adidas has raised its full-year guidance for 2025, expecting brand revenue to grow by double digits and operating profit to reach €2 billion, up from a previous estimate of €1.7 billion to €1.8 billion [4] Product Line Performance - Revenue from footwear increased by 11% to €3.75 billion, with the ADIZERO series running shoes seeing over 30% growth [5] - Apparel revenue grew by 16% to €2.38 billion, while accessories saw a modest increase of 1% [5] Regional Performance - Sales in Europe grew by 12% to €2.33 billion, North America by 8% to €1.3 billion, and Greater China by 10% to €947 million [7] - Greater China has shown consistent quality growth for ten consecutive quarters, with Q3 revenue reaching €974 million, a 10% year-on-year increase [7] Strategic Initiatives - Adidas is focusing on sports marketing and professional endorsements to rebuild its reputation in vertical markets like running and football [5] - The company is implementing a "China for China" strategy, emphasizing local consumer engagement and innovation, with China being defined as a growth engine and innovation testing ground [7][9] Market Challenges - Adidas has faced increased costs due to higher tariffs on goods from Vietnam and Indonesia, impacting its pricing strategy in the U.S. market [7] - Recent consumer feedback highlighted concerns over the quality of Adidas products compared to local competitors, leading to discussions about pricing and product sourcing [11]

Core Insights - Adidas reported global revenue of €5.952 billion in Q2 2025, reflecting an 8% year-over-year growth at constant currency, with the main brand's revenue increasing by 12% [1] - The company maintained its full-year revenue guidance for high single-digit growth and operating profit of €1.7-1.8 billion despite cost pressures from increased tariffs in the U.S. [1] - The Greater China region showed strong performance, with Q2 and H1 revenues growing by 11% and 13% respectively, marking nine consecutive quarters of "quality growth" [1] Revenue Performance - In Q2, Adidas experienced a 11% revenue growth in Europe due to high base effects from the 2024 European Championship, while North America, Latin America, emerging markets, and Japan/Korea achieved double-digit growth [1] - Latin America led with a 25% growth rate, and Greater China contributed €1.827 billion in revenue for H1, up 13% year-over-year, validating the effectiveness of the localization strategy [1] Product Category Growth - The apparel category outpaced others with a 17% year-over-year revenue growth in Q2, significantly higher than the 9% growth in footwear and 7% in accessories [2] - The running segment was a key driver for footwear growth, with the ADIZERO series seeing over 25% revenue growth, and the ADIZERO EVOSL model contributing nearly 30% of global running shoe revenue [2] Channel Development - Wholesale revenue grew by 14% at constant currency in Q2, while self-operated retail and e-commerce grew by 9%, indicating a balanced expansion across channels [3] - The company opened 60-70 new stores in H1 and is modernizing existing stores to enhance the offline experience, with all channels achieving double-digit growth when excluding Yeezy impacts [3] Strategic Outlook - Despite the anticipated €200 million increase in costs due to U.S. tariffs, Adidas has not adjusted its full-year profit guidance and plans to optimize procurement and control discount rates to mitigate some of the pressure [4] - The company emphasizes "localized operations" as a core strategy for global growth, tailoring products and marketing to meet consumer needs, particularly in Greater China [4] Challenges and Market Position - Management highlighted potential consumer demand suppression due to global economic fluctuations and tariff uncertainties, but the company aims to prioritize core market growth to mitigate risks [5] - Adidas targets to double its business scale in North America while maintaining industry leadership in other regions [5]