The Shoes & Retail Apparel industry players ride premium brands and digital growth, even as promotions, inventory and cost inflation keep pressure on margins. Stocks like ADDYY, SHOO, CRI, WWW and CAL are positioned for growth.
Adidas reported first-quarter operating profit of €705 million, beating analyst expectations as robust demand for apparel and performance categories helped the German sportswear group start 2026 on a strong footing. The result was above the €647 million average estimate in a company-compiled analyst consensus and marked a 16% increase from €610 million a year earlier.
The sporting-goods company confirmed its outlook for the year but noted that the current environment is characterized by economic challenges and high uncertainty.
Talk about a missed opportunity: the first competitive marathon runner to complete the race in under two hours wore Adidas sneakers — but runners who want to wear the same gear are not able to order it.
In the highly competitive sportswear industry, Nike holds a commanding lead—but its lead is narrowing. Adidas, the number two player, just reported double-digit growth across all segments and markets in the fourth quarter of 2025, reaching $29 billion (€24.8 billion) in annual sales.
I upgrade adidas to Buy as the business recovery is now clear, with broad-based growth and improved product quality. ADDYY delivered 13% FX-neutral revenue growth and 54% EBIT growth in FY25, even without Yeezy contributions. North America has shifted from a drag to a growth contributor, reducing a key risk to the turnaround thesis.
Adidas is recovering top-line growth, but inventory buildup and volatile cash flows raise questions about the quality of this rebound. ADDYY/ADDDF trades at undemanding multiples, reflecting market skepticism about management's ability to normalize inventory and sustain high-single-digit growth. Management guides for FY26 revenue growth in the high single digits and ~€2.3B operating profit, but execution and inventory normalization are critical.
ADDYY, ATR and CNQ have been added to the Zacks Rank #5 (Strong Sell) List on March 9th, 2026.
adidas AG (ADDYY) Q4 2025 Earnings Call Transcript
The German sporting goods retailer announced a €400 million hit from tariffs and exchange rate changes.
Shares of Adidas fell as much as 8% on Wednesday morning after sharing a disappointing outlook for this year. The German sportswear company sees 2026 operating profit increasing to around 2.3 billion euros ($2.68 billion), despite a 400 million euro negative impact from U.S. tariffs and unfavorable currency developments.
Adidas' chief commercial officer said on Wednesday that one of the company's franchise stores in Israel had been hit by a bomb, but no one had been injured, amid the unfolding war in Iran.