Adidas Shares Jump on Record Revenue and Billion-Euro Buyback Plan

Adidas shares climbed 6% Friday as the company released preliminary figures showing it achieved record revenue in 2025, a year marked by significant economic headwinds. The sportswear giant reported annual sales of €24.811 billion, up from €23.683 billion in 2024, even after absorbing a currency impact of more than €1 billion. Stripping out currency effects, sales for the core Adidas brand grew by 13% for the second consecutive year.

The company also announced a new €1 billion share buyback program, set to begin in early February. This move, funded by expected 2026 cash flows, signals strong confidence in the brand's ongoing financial health. The news provided a clear endorsement of the turnaround strategy led by CEO Bjørn Gulden, who took the helm in 2023.

Operating profit more than doubled in the fourth quarter, reaching €164 million. For the full year, it jumped to €2.056 billion, with the profit margin rising to 8.3%. The gross margin also improved to 51.6%, a notable feat given unfavorable exchange rates and higher U.S. tariffs.

Gulden described the year's performance as 'quality growth,' driven by selling more products at full price. The results exceeded many analyst expectations. The company's revival comes after ending its controversial Yeezy partnership; in 2025, Adidas generated no revenue from the line, compared to €650 million the previous year.

Growth was broad-based, with double-digit increases in footwear and apparel across all major regions, including North America and Greater China. This stands in contrast to recent struggles reported by competitor Nike. Investors will get a fuller picture, including formal 2026 guidance, when Adidas presents its complete annual report on March 4.

Source: Webpronews