Adidas reaches record revenue thanks to the World Cup and spends 212 million euros more on marketing

Adidas generated revenue of 6,743 million euros in the second quarter of 2026, the highest quarterly figure in the history of the company. Against the year before that is a rise of 13 percent, and 14 percent adjusted for currency.

The growth was carried by the football World Cup. The group kitted out both finalists, Spain and Argentina, and sold correspondingly more shirts and balls.

Operating profit by contrast rose only five percent to 574 million euros and therefore fell short of expectations. Analysts had reckoned with 615.6 million euros.

The share dropped almost eight percent before the open.

The short version

• Revenue reached 6,743 million euros in the second quarter of 2026, the highest quarterly figure in the history of the company, a rise of 13 percent.
• Operating profit by contrast rose only five percent to 574 million euros and fell short of expectations.
• In the course of the World Cup Adidas spent 212 million euros more on marketing than in the year earlier quarter.

The tournament cost more than it brought in

The group names the cause of the gap between revenue and profit itself. In the course of the World Cup Adidas spent 212 million euros more on marketing than in the year earlier quarter.

On top of that came higher costs for freight and sourcing as well as increased tariffs in the United States.

A pattern that often appears around sporting events therefore shows here. A tournament drives sales but at the same time demands considerable advertising spend that falls in the same quarter. Revenue rises immediately, while the brand effect only works later.

The gross margin stayed almost stable in the first half at 51.8 percent after 51.9 percent a year earlier. A high share of full price sales and a more favourable product mix were offset by tariffs and currency effects.

Revenue guidance up, profit guidance unchanged

The group raised its revenue expectation for 2026 to currency adjusted growth of nine to ten percent, after a high single digit figure previously.

For operating profit it stayed at around 2.3 billion euros. Analysts had already put 2.4 billion euros here.

Exactly that combination explains the share price reaction. More revenue with an unchanged profit expectation means, in arithmetic terms, a weaker margin.

250 to 300 million dollars of refunds not included

One item could change the picture later. Adidas received a first small refund in the second quarter for tariffs which by its own account were levied unlawfully.

Possible further refunds of 250 to 300 million dollars are explicitly not included in the full year guidance. Because of the accounting approach chosen, only a small contribution to profit was recorded in the quarter.

Chief executive Björn Gulden had previously put the net burden from American tariffs for 2026 at 200 million euros, after 100 million euros in 2025.

Own channels grow three times as fast as wholesale

Broken down by channel a clear shift shows. In its own retail and its own online business growth was above 20 percent in each case. In wholesale it was only six percent, and weaker in Europe in particular.

For the margin that is favourable, because in direct sales the retail spread stays with the group.

By region, currency adjusted revenue in the first half grew 15 percent in North America, 16 percent in China, 27 percent in Latin America, 21 percent in Japan and South Korea and eleven percent in the emerging markets. Europe lagged clearly at six percent.

Other operating expenses rose ten percent in the half year to 5,666 million euros. Relative to revenue they fell slightly to 42.5 percent.

A change in the finance role

Finance chief Harm Ohlmeyer will not extend his contract, which runs to the beginning of 2028. Birgit Kretschmer was appointed to the management board with effect from 1 September 2026 and takes over the role at the end of the year.

The research house ODDO BHF cut its price target from 220 to 210 euros and left the rating at outperform.

Frequently asked questions

Why does the share fall despite record revenue

The group raised its revenue expectation for 2026 to nine to ten percent, while operating profit stayed at around 2.3 billion euros. More revenue with an unchanged profit expectation means, in arithmetic terms, a weaker margin.

Why did the tournament cost more than it brought in

In the course of the World Cup Adidas spent 212 million euros more on marketing than in the year earlier quarter. On top of that came higher costs for freight and sourcing as well as increased tariffs in the United States. Revenue rises immediately, the brand effect only works later.

What about the tariff refunds

Adidas received a first small refund in the second quarter for tariffs which by its own account were levied unlawfully. Possible further refunds of 250 to 300 million dollars are explicitly not included in the full year guidance.

This analysis is for information only and is not investment advice.