economy

March 4, 2026

Sportswear giant Adidas drops 8% after profit guidance disappoints

Adidas shares have fallen about 43% over the past year as investors remain skeptical about the growth prospects of the global sportswear industry.

Sportswear giant Adidas drops 8% after profit guidance disappoints

TL;DR

  • Adidas shares fell up to 8% after releasing a disappointing 2026 outlook.
  • The company anticipates high single-digit revenue growth from 2025's 24.8 billion euros.
  • Operating profit is projected to reach around 2.3 billion euros, impacted by 400 million euros from U.S. tariffs and currency swings.
  • Analysts noted the profitability outlook was 15% below expectations, with an implied 9% margin.
  • Fourth-quarter sales and profit slightly missed estimates.
  • CEO Bjørn Gulden highlighted strong performance in the fourth quarter despite external turbulence.
  • Mid-term targets include high single-digit currency-neutral sales growth and mid-teens annual operating profit growth from 2026-2028.
  • Adidas shares have fallen about 43% over the past year.
  • The global sportswear industry faces pressures from excess supply and changing consumer preferences, particularly in China.
  • Competitors Puma and Nike are also undergoing turnarounds.
  • CEO Bjørn Gulden's contract was extended until 2030.
  • Gulden took over in 2023 to stabilize the company after its split with Ye.
  • The split with Ye over antisemitic comments impacted Adidas, which relied on Yeezy sneaker sales.

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