Abstract
adidas AG will report quarterly results on July 30, 2026 after market close; investors are watching revenue growth, margin trajectory, and EPS against management’s guidance to gauge execution on product momentum and regional mix.
Market Forecast
Consensus for the current quarter points to revenue of 7.30 billion in EUR terms, EBIT of 0.72 billion, and EPS of 1.36, implying forecast year-over-year growth of 7.74% for revenue, 13.10% for EBIT, and 19.30% for EPS; model-implied YoY for EPS and EBIT suggests continued margin recovery. Forecast gross margin and net margin are not explicitly provided; management’s prior commentary and product mix imply sustained improvement, while the market expects adjusted EPS to rise 19.30% year over year to 1.36.
The company’s main business mix remains weighted to Europe, North America, and Greater China, with product momentum in performance running and Originals underpinning demand; inventory normalization and disciplined sell-in are expected to support profitability. The most promising revenue contributor is Europe at 2.09 billion in the last reported period, with evidence of further YoY strength driven by footwear franchises and improved wholesale sell-through.
Last Quarter Review
In the previous quarter, adidas AG delivered revenue of 6.59 billion in EUR terms, a gross profit margin of 51.11%, net profit attributable to shareholders of 0.48 billion, a net margin of 7.31%, and adjusted EPS of 1.35, representing a 7.14% year-over-year revenue increase and a 10.66% rise in adjusted EPS. Net profit expanded sharply on a sequential basis, with quarter-on-quarter growth in profit attributable to the parent company of 495.06%, reflecting a clean-up of non-core items and operating leverage.
Main business performance showed Europe at 2.09 billion, North America at 1.20 billion, Greater China at 1.14 billion, Emerging Markets at 0.87 billion, Latin America at 0.83 billion, and Japan/South Korea at 0.41 billion; the mix indicated sustained strength in Europe and stabilization in Greater China as wholesale partners improved order intake.
Current Quarter Outlook
Main business trajectory and margin path
The revenue outlook of 7.30 billion in EUR terms suggests continued top-line growth against a normalized inventory and promotional backdrop, with a tilt toward higher-margin footwear franchises supporting gross margin. The company’s recent gross margin of 51.11% provides a reference point; with EBIT estimated at 0.72 billion and EPS at 1.36, the setup implies incremental operating leverage if sell-through remains healthy. Watch for the balance between wholesale replenishment in Europe and controlled sell-in in North America, as this mix can influence both volume and markdown pressure.
Most promising business and regional dynamics
Europe remains the largest revenue base at 2.09 billion in the last quarter and is poised to be a principal driver this quarter given sustained demand in key footwear and lifestyle franchises and resilient wholesale orders. Greater China’s 1.14 billion baseline provides upside opportunity if consumer sentiment continues to improve and localized assortments resonate, although visibility can be uneven. Execution in running and global football should provide consistent demand catalysts, with product drops and event-linked launches supporting sell-through while pricing discipline protects margins.
Key stock price swing factors this quarter
Margin commentary will be a primary swing factor, especially any guidance on gross margin cadence relative to product mix and FX effects. Regional order trends in North America and Greater China could shift sentiment; investors will parse wholesale order books and direct-to-consumer growth for signals on durability. Any update to full-year guidance, including inventory and cash flow cadence, could recalibrate expectations for EPS trajectory and valuation, particularly if EBIT conversion rates exceed or lag the forecast trend.
Analyst Opinions
Bullish views appear to dominate among institutions monitoring adidas AG during this period, citing sustained product momentum, improving gross margin structure, and an EBIT and EPS trajectory aligned with consensus growth of 13.10% and 19.30% year over year, respectively. Analysts point to Europe-led resilience and signs of stabilization in Greater China as supportive to the revenue forecast of 7.30 billion, while disciplined sell-in is expected to cap promotional intensity and protect margins. The bullish camp emphasizes that the prior quarter’s 51.11% gross margin and the strong quarter-on-quarter rebound in net profit lay a foundation for further operating leverage, with upcoming footwear launches providing incremental catalysts to sustain sell-through across key channels.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments