Full Year 2025 Adidas AG Earnings Call Transcript
Key Points
- Adidas AG (ADDDF) reported a 13% currency-neutral growth for the Adidas brand in 2025, showcasing strong operational performance.
- The company achieved a gross margin of nearly 52%, an all-time high without the Yeezy impact, indicating strong sales quality.
- Adidas AG (ADDDF) saw significant growth in key markets, including a 10% increase in North America and 13% in Greater China.
- The company reported a 54% increase in operating profit, reaching €2.56 billion, surpassing expectations.
- Adidas AG (ADDDF) maintained a strong balance sheet with a leverage ratio of 1.4, supporting a 40% increase in dividend payout.
- The company faced a €1 billion negative impact due to currency fluctuations, affecting reported growth.
- Adidas AG (ADDDF) encountered a €200 million tariff headwind in 2026, impacting profitability.
- The promotional environment in Europe and North America led to increased discounting, affecting margins.
- The company anticipates a €400 million reduction in profit due to non-mitigated tariffs and FX impacts in 2026.
- Adidas AG (ADDDF) faces challenges in the US market, with a need to improve visibility and competitiveness.
Ladies and gentlemen, welcome to the adidas AG full-year 2025 conference call and live webcast. I am Moira, the conference call operator. (Operator Instructions) The conference must not be recorded for publication or broadcast.
At this time, it's my pleasure to hand over to Sebastian Steffen, Senior Vice President, Investor Relations, Corporate Communications, and Corporate Strategy. Please go ahead.
Yeah, we just realized it's a long title. Thanks very much, Moira. Good evening, good afternoon, good morning, everyone, wherever you're joining us today. Welcome to our full-year 2025 conference call.
Our presenters today are our CEO, Bjørn Gulden, and our CFO, Harm Ohlmeyer. I know that there's a lot to talk about today. We will kick it off in a second with Bjørn and Harm, who will provide the details for 2025. They will be sharing with you our operational and financial highlights for last year, present our outlook for 2026, of course also talk about our outlook for 2027 and 2028.
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