Adidas stock plunged 17.1% in trading, sliding to as low as 149.65 after the German sportswear group released second-quarter results that combined record revenue with a notable operating profit miss. The share move is shaping up as the companys largest single-day decline in more than six years.
At the operating level, Adidas posted a 5% increase in Q2 operating profit to 574 million. That figure undercut analyst expectations, which clustered in the 615e623 million range, and helped spark the steep selloff.
The company attributed part of the profit shortfall to a roughly 30% year-on-year increase in marketing expenditure as Adidas stepped up promotional spend linked to the 2026 FIFA World Cup. Management said the marketing push supported brand exposure but compressed margins and weighed on operating income.
On the top line, results were considerably more upbeat. Net sales reached a record 6.74 billion, driven by strength in running and football categories. Sales in China increased by 19% in the quarter. Reflecting the revenue momentum, management lifted its full-year currency-adjusted revenue growth guidance to 9% to 10% from its prior "high single-digit" outlook.
Despite the stronger revenue trajectory, Adidas left its full-year operating profit target unchanged at about 2.3 billion. That decision disappointed investors who had anticipated a profit upgrade to accompany the revenue beat; analysts in the market had modelled expectations closer to 2.4 billion.
Heightening uncertainty for the stock, Adidas said long-serving CFO Harm Ohlmeyer will not renew his contract after nearly 30 years with the company. Birgit Kretschmer is slated to take over the CFO role by year-end 2026. The announcement added a management transition element to an already difficult trading session.
The market provided little support for Adidas. The DAX slipped 0.44% to around 25,348 points, with Adidas sharp drop a notable drag on the index. Competitor Puma also erased ground, falling in sympathy with the sector move. Meanwhile, the U.S. Federal Reserve held its benchmark interest rate steady at 3.5% to 3.75%, as expected, so there was no monetary policy surprise to offset the company-specific pressures.
In summary, investors received a mixed set of signals: a clear top-line beat and an upgraded revenue outlook, but only a modest operating-profit uptick and no lift to the full-year profit target. That combination, together with elevated marketing spend, rising inventories and the announced CFO departure, pushed shares to their lowest level since the spring of 2026.
Details at a glance
- Q2 operating profit: 574 million, up 5%, below analyst range of 615e623 million.
- Q2 net sales: record 6.74 billion; China sales +19%.
- Marketing spend: approximately 30% higher year-on-year.
- Full-year revenue growth guidance: raised to 9% to 10% (currency-adjusted).
- Full-year operating profit guidance: unchanged at around 2.3 billion.
- CFO transition: Harm Ohlmeyer will not renew; Birgit Kretschmer to assume CFO role by year-end 2026.