Half Year 2025 Adidas AG Earnings Call Transcript
Key Points
- Adidas AG (ADDDF) reported a strong Q2 2025 with a 12% growth in the adidas brand and an 8% overall company growth, despite the absence of the Yeezy business.
- The company achieved a gross margin of 51.7%, up 90 basis points, showcasing strong sell-throughs and effective cost management.
- Adidas AG (ADDDF) experienced significant growth in key markets, including a 15% increase in the Americas and 11% in Greater China, indicating strong global demand.
- The company's wholesale business grew by 14%, and its e-commerce and brick-and-mortar stores both saw a 9% increase, reflecting balanced growth across channels.
- Adidas AG (ADDDF) is optimistic about the upcoming World Cup, expecting it to have a significant cultural and commercial impact, potentially generating over a billion in business.
- The company faces uncertainty due to potential tariff increases in the US, which could impact costs by approximately EUR 200 million in the second half of 2025.
- Adidas AG (ADDDF) is cautious about the US market, as potential price increases due to tariffs could affect consumer demand.
- The company is dealing with a 22% increase in inventory, which, while planned for future growth, raises concerns about potential overstocking.
- Adidas AG (ADDDF) acknowledges challenges in the performance running category, needing more time to gain market share in specialty running channels.
- The company is navigating a volatile and uncertain global environment, which could impact its ability to meet its financial targets.
Ladies and gentlemen, welcome to the adidas AG Q2 2025 conference call and live webcast. I'm Moira, the Chorus Call operator. (Operator Instructions) And the conference has been recorded. (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. Please go ahead.
Thanks very much, Moira. And good evening, good afternoon, good morning, everyone, where are you joining us today. Welcome to our Q2 2025 results conference call here in Herzogenaurach.
Our presenters today, our CEO, Bjorn Gulden; and our CFO, Harm Ohlmeyer. Before Bjorn and Harm will take you through the puts and takes of the quarter and explain our expectations for the remainder of the year, I would like to ask you once again to limit your initial questions to two during our Q&A session to allow as many people as possible to ask their questions. Thanks very much.
And now without any further ado, over to you, Bjorn.
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