Adidas lifts annual sales growth outlook despite decline in Q2 profit

German athletic apparel giant Adidas reported a decline in net profit for the second quarter of fiscal 2026, hurt by loss from discontinued operations, but lifted its annual sales growth outlook.

However, the company recorded a rise in net sales, helped by improved demand.

For the three-month period, the company reported a net income of €355 million ($406 million), or €2.02 per share, less than €369 million, or €2.07 per share, in the same period last year. Loss from discontinued operations was €14 million, compared with a gain of €6 million a year ago.

Net profit from continuing operations was €398 million, or €2.10 per share, higher than €375 million, or €2.03 per share, in the prior year. Operating income stood at €574 million as against €546 million in the previous year.

The company posted net sales of €6.743 billion, up from €5.952 billion last year. The Apparel division registered net sales of €2.721 billion, higher than €2.029 billion a year ago.

In addition, Adidas has appointed Birgit Kretschmer to its executive board with effect from September 1. She will succeed Harm Ohlmeyer as the company's chief financial officer at the end of the year. This follows Ohlmeyer's decision not to extend his executive board mandate beyond his current term.

With this appointment, Kretschmer returns to Adidas, where she had spent her 25 years in different leadership roles across the organization. For the past six years, she worked as chief financial officer of C&A, a fashion retailer.

Looking ahead, for fiscal 2026, the company has reaffirmed its operating profit guidance of €2.3 billion. For fiscal 2026, citing its better-than-expected current earnings performance, Adidas now anticipates revenue growth of 9% to 10% against its earlier expectation for revenue growth in a high-single-digit rate.

For fiscal 2025, Adidas had posted an operating profit of €2.056 billion, with net sales of €24.811 billion.