Adidas posts record quarter as apparel sales jump 19%, but lifestyle sneakers stall

Adidas confirmed record third-quarter results on Thursday, driven by strong demand for its clothing, while its lifestyle sneaker business struggled in a heavily discounted market.

The numbers

• Revenue rose 9% to €7.25 billion, a quarterly record; currency-neutral growth was 7%.
• Apparel grew 19% currency-neutral, led by Originals and football; footwear was flat as the company kept wholesale deliveries conservative.
• Operating profit jumped 37% to €1.0 billion, also a record. The gross margin rose to 54.3%, helped by a refund of about €200 million in US tariffs.
• The company now expects full-year operating profit of about €2.5 billion (previously about €2.3 billion).

Style trends

In Lifestyle, Adidas cited demand for Firebird and adicolor track tops, collegiate-inspired pieces and collaborations with Jennie, Arte Antwerp, Simone Rocha and Willy Chavarria; Samba, Handball Spezial and Superstar variations sold well.

Regions

Sales grew 13% in Greater China and 12% in North America, but fell 4% in Europe. CEO Bjørn Gulden blamed too much inventory and discounting in lifestyle footwear and said this “will soon normalize”. Adidas expects high single-digit growth in Europe in the fourth quarter; Reuters reports its shares rose about 4% in Frankfurt.