Shares for Adidas fell after the sportswear company provided disappointing guidance for 2026 due to unfavourable currency swings and a hit from United States tariffs.
The company said it expects revenue growth in the high single digits from 2025’s total of €24.8 billion (A$40.4 billion).
Adidas said operating profit is expected to increase to around €2.3 billion, despite a €400 million negative impact from U.S. tariffs and unfavourable currency developments.
Despite revenues rising 11% to €6.1 billion and profit doubling to more than €164 billion, they still missed the mark according to FactSheet estimates.
“Driving double-digit growth in the fourth quarter despite all the external turbulence, and more than doubling our operating profit in the quarter made the year end very well and made 2025 much better than we had planned and expected when the year started,” Adidas CEO Bjørn Gulden said.
The majority of the company’s fourth quarter revenue growth came from its performance sector, which increased by 27%.
Adidas also offered mid-term targets, with currency-neutral sales growing at a high single-digit rate in 2026-2028 and operating profit expanding at a mid-teens annual rate over that period.
The company has also extended Gulden’s contract until 2030.
Gulden took the reins in 2023 to help turn the company around after its split with rapper Ye, formerly known as Kanye West, following antisemitic comments that triggered a crisis for Adidas, which relied on Ye’s sneaker line, Yeezys, for sales.
The company completed the sale of the remaining Yeezy inventory at the end of last year, and its fourth quarter 2025 results did not include any Yeezy revenue.
Adidas (ETR: ADS) stock lost 3.60% to €141.80 on Wednesday. The company's stock has fallen 42.08% over the past year. Its market cap is €26.26 billion euros.
