Adidas Sales Rise Despite Tariffs | Share Buyback News

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Adidas Defies Economic Headwinds with Record Sales and Billion-Euro Buyback

Despite a challenging global economic landscape, sportswear giant Adidas achieved record sales in 2025 and significantly boosted its operating results, signaling a strong turnaround under the leadership of CEO Björn Gulden. The company’s performance, announced Thursday evening, prompted a surge in investor confidence, with shares gaining 4.4 percent in early trading on Friday.

Navigating Global Challenges

Adidas successfully navigated a complex environment marked by US tariff policies, a strong euro, and broader concerns about European markets and industry-wide discount battles. According to a company release, preliminary data indicates a 13 percent increase in brand sales last year, adjusted for currency effects. Overall revenues climbed from €23.7 billion to €24.8 billion, even with over €1 billion in negative currency impacts.

Did you know? – Adidas’s success comes despite a strong euro, which typically makes exports more expensive. The company mitigated this impact through strategic pricing and strong brand demand.

Financial Performance Surpasses Expectations

The company’s financial health is demonstrably improving. The gross margin – a key metric closely watched by analysts – saw an increase of 0.8 percentage points, reaching 51.6 percent. The operating result rose by more than €700 million, reaching nearly €2.1 billion. “I am again very proud of what our teams have achieved,” stated Gulden. “Despite many external turbulences…double-digit growth was also achieved in the fourth quarter and operating profit more than doubled.”

Share Buyback Signals Confidence

Bolstered by strong cash flow, Adidas announced a share buyback programme of up to €1 billion. This move, exceeding market expectations, underscores management’s confidence in the company’s future prospects. One analyst noted that the program is “at the upper end of expectations.” The shares are slated to be withdrawn, reducing the number of outstanding shares and potentially boosting earnings per share.

Pro tip – Share buybacks can increase earnings per share by reducing the total number of shares outstanding. This can make a stock more attractive to investors.

A Stock in Recovery Mode

While the recent gains are encouraging, Adidas shares have faced a prolonged downturn. Over the past 12 months, the stock has lost more than 40 percent of its value, and it was down approximately 16 percent before the release of this key data.To break this negative trend, analysts suggest the price needs to approach the €168 mark.As of Friday morning, the stock was trading around €150.

Outlook for Continued Growth

Looking ahead, Adidas anticipates continued growth. The market currently expects sales growth in the high single-digit percentage range for 2026. The robust double-digit growth experienced in the last quarter suggests that previous targets are not indicative of a slowdown, but rather a conservative approach to forecasting.

Felix Dennl from Bankhaus Metzler highlighted Adidas’s success in maintaining pricing power, stating that the company “sold his goods at good prices in a time marked by discount campaigns.” Gulden echoed this sentiment,praising the high sell-through at full price and the company’s ability

Reader question – do you think Adidas’s success is enduring given the ongoing economic uncertainty? share your thoughts!

Why: Adidas experienced a strong turnaround due to effective navigation of global economic challenges and strategic pricing. Who: The turnaround is largely attributed to CEO Björn Gulden’s leadership. What: The company achieved record sales in 2025, a 13% increase in brand sales, and announced a €1 billion share buyback program. How: Adidas maintained pricing power, achieved double-digit growth in the fourth quarter, and improved its gross margin and operating result. The situation ended with a surge in investor confidence and a