Revenue Development
Adidas recorded surprisingly strong revenue growth in the first quarter of 2025. Revenue increased by approximately 700 million euros to 6.153 billion euros, representing an increase of about 12.7% compared to the previous year. On a currency-adjusted basis, growth was even 13%. Excluding revenue from Yeezy products, which had sales in the previous year, the growth of the Adidas brand was an impressive 17%.
Earnings Development
The operating profit of Adidas also showed a positive trend. It rose from 336 million euros in the previous year to 610 million euros in the first quarter of 2025. The operating profit margin improved from 6.2% to 9.9%.
Margin Development
The gross margin of Adidas also increased, by 0.9 percentage points to 52.1%. The improvement was even more pronounced for the Adidas brand itself, where the gross margin increased by 1.6 percentage points.
Market Reaction and Forecasts
The strong financial results led to Adidas shares rising by about four percent in Tradegate trading. Analysts responded positively, prompting Bank of America to upgrade Adidas shares from “Neutral” to “Buy” and raise the price target from 260 EUR to 274 EUR. These positive developments could further increase investor interest in Adidas, especially as the company is among the leading firms in the DAX. The full figures for the first quarter will be published on April 29.