Adidas is increasing its full-year 2026 profit forecast after reporting record preliminary revenue and operating profit for the third quarter, supported by strong full-price sales, growth in key sports categories and a €200 million tariff refund.

The German sportswear company said Tuesday that third-quarter revenue rose 9 percent to a record €7.25 billion. On a currency-neutral basis, sales increased 7 percent compared with the same period last year.

Operating profit climbed 37 percent to €1.01 billion, marking the highest quarterly level in the company’s history. Gross margin also improved by 2.5 percentage points to 54.3 percent.

Adidas said the improvement reflected healthy full-price sales and the receipt of most of its U.S. tariff claims, resulting in a refund of approximately €200 million. Unfavorable currency movements, however, weighed on gross margin performance.

Following the stronger-than-expected results, the company maintained its expectation of 9 to 10 percent currency-neutral revenue growth for the full year while revising its profitability outlook upward.

Adidas now expects full-year operating profit to reach approximately €2.5 billion, compared with its previous forecast of around €2.3 billion. The company had initially identified potential improvements that could lift operating profit to €2.6 billion, including approximately €100 million from stronger underlying profitability and the €200 million tariff refund.

However, management plans to reinvest around €100 million in the fourth quarter in initiatives designed to strengthen future operating leverage. This brings the revised full-year operating profit target to approximately €2.5 billion.

Sportswear growth offsets lifestyle footwear challenges

Chief Executive Officer Bjørn Gulden described the quarter as another strong performance, crediting the company’s brand, products and employees for its results.

“Our brand, our product and our people are our strength,” Gulden said.

He added that Adidas’ investments in marketing and creativity have strengthened its global brand appeal, while innovation continues to drive profitable growth across football, running and training.

New apparel collections developed by the company’s design and product development teams are also generating strong demand, supporting its lifestyle business.

However, the lifestyle footwear segment continues to face challenges from excess inventory and widespread discounting. Gulden said the company expects conditions to normalize, while emphasizing that Adidas will prioritize sustainable profitability over short-term sales growth.

The company intends to maintain a disciplined approach to inventory, strengthen its business foundations and continue working toward its medium-term financial targets.