German athletic wear giant Adidas announced Wednesday that its first-quarter earnings surpassed analyst predictions, driven by robust consumer demand even as the company navigates what Chief Executive Bjorn Gulden characterized as a “very volatile and heavily discounted” marketplace, particularly in the sneaker segment.
The company’s total revenue climbed 14% when adjusted for currency fluctuations, reaching 6.6 billion euros (equivalent to $7.7 billion) during the three-month period. This growth occurred despite declining sales in multiple Middle Eastern markets affected by ongoing regional conflicts, according to the athletic apparel manufacturer.
The sportswear company emphasized its strategic approach of maintaining careful control over product distribution to retailers, preventing the need for steep price reductions on footwear. This contrasts sharply with competitor Nike’s recent announcement that it would pursue “aggressive” markdown strategies to eliminate excess inventory.
Operating earnings for the initial quarter of 2026 increased 16% to 705 million euros, surpassing the 647 million euro forecast compiled from analyst predictions and representing growth from the previous year’s 610 million euros.
Revenue received a boost from heightened interest in soccer merchandise as anticipation builds for the FIFA World Cup 2026 tournament scheduled to begin in June, the company noted.
