The logo of Adidas is seen on a Gazelle sneaker for sale at a shop in Berlin, Germany, May 2, 2024.
Lisi Niesner | Reuters
Shares of Adidas fell as much as 8% on Wednesday after providing a disappointing 2026 outlook, as it grapples with unfavorable currency swings and a hit from U.S. tariffs.
The German sportswear company sees 2026 revenue growth in the high single digits from 2025’s total of 24.8 billion euros ($28.86 billion).
Operating profit is expected to increase to around 2.3 billion euros, despite a 400 million euro negative impact from U.S. tariffs and unfavorable currency developments.
The profitability outlook “will disappoint” investors, as it was 15% below overall expectations, said RBC Capital Markets analysts. “The question will be how conservative is the EBIT guidance given adidas’ preferred approach to be prudent at the start of the year,” they added.
An implied 9% margin from operating profit of 2.3 billion euros is well shy of expectations, Jefferies analyst James Grzinic said.
Fourth-quarter sales and profit both slightly missed the mark at 6.1 billion euros and 164 million euros in constant currencies, respectively, according to FactSet 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,” said Adidas CEO Bjørn Gulden.
Adidas also presented mid-term targets on Wednesday, seeing currency-neutral sales growing at a high single-digit rate in 2026-2028, with operating profit expanding by a mid-teens annual growth rate over that period.
Shares of Adidas were last seen 6.7% lower, notching a fresh 52-week low.
Adidas shares have almost halved over the past year.
Coming into Wednesday trading, Adidas shares had fallen about 43% over the past 12 months as investors remain skeptical about Adidas’ future.
The growth prospects of the global sportswear industry, characterized by excess supply and changing consumer preferences in China, represent another pressure point for investors.
Country peer Puma and bigger U.S. competitor Nike have faced similar woes and are also in the midst of a turnaround. In October, Nike’s CEO told CNBC it would “take a while” for the company to return to profitable growth.
Adidas on Wednesday also extended CEO Gulden’s contract until 2030, in an apparent vote of confidence in his strategy.
Gulden took the reins in 2023 to steady the company after its split with rapper Ye, formerly known as Kanye West, over antisemitic comments and triggering a crisis for Adidas, which had been relying on sales of the Yeezy sneaker line that Ye fronted.
