Adidas Q3: Tariff refund and full-price sales drive growth

German sportswear brand Adidas has reported record top and bottom-line results for the third quarter of 2026, prompting the company to raise its full-year operating profit guidance.

Based on preliminary figures, revenues increased 9 percent to a record 7.25 billion euros (8.14 billion dollars) in the third quarter. In currency-neutral terms, revenues grew 7 percent during the period. The gross margin for the group improved by 2.5 percentage points to reach 54.3 percent.

Third-quarter operating profit rose 37 percent to 1.01 billion euros, marking the highest quarterly operating profit level on record for the company.

Tariff refund boosts profitability

During the quarter, Adidas received the majority of its US tariff claims, recording a refund of around 200 million euros that contributed directly to the gross margin improvement. Strong full-price sales also supported the gross margin growth, though unfavorable currency developments had a negative impact.

Following the third-quarter performance, Adidas expects currency-neutral revenue growth of between 9 percent and 10 percent in full year 2026 to drive higher profitability. The company expects underlying operating profit to be around 100 million euros higher than previously assumed. Combined with the 200 million euro tariff refund, the group was set to increase its operating profit to 2.6 billion euros.

Adidas has decided to reinvest around 100 million euros in the fourth quarter into initiatives aimed at enabling greater operating leverage in the future, aligning with its mid-term profitability targets. Consequently, the group now projects full-year operating profit to reach around 2.5 billion euros in 2026, up from the previously forecast 2.3 billion euros.

Category performance and inventory dynamics

Adidas chief executive officer Bjørn Gulden noted that investments in marketing and product innovation have driven growth across key performance categories.

“Our investment in innovation is paying off, not only by great wins, stories and performances, but also with strong and profitable growth in Football, Running and Training. Our fantastic designers and development teams have created new apparel collections that are globally in high demand and currently fueling our lifestyle business,” Gulden stated.

Addressing current market conditions, Gulden acknowledged headwind in certain segments: “Yes, the footwear lifestyle business is currently challenging, mainly due to too much inventory and too much discounting in the marketplace, but we know this will soon normalize again. In this environment we are not trying to maximize the short-term. Instead we remain disciplined, continue to strengthen our foundation for sustainable and profitable growth and stay focused on our mid-term targets.”

Adidas is scheduled to publish its full financial results for the third quarter on October 29, 2026.