Adidas shares plunge on profit miss despite record Q2 sales

Adidas shares tumbled as much as 17.9% on Thursday in Frankfurt — their sharpest single-day drop in over a decade — after the German sportswear giant reported second-quarter operating profit that fell well short of expectations despite delivering record revenue fueled by the 2026 FIFA World Cup.

World Cup Boost Meets Marketing Blowout

Operating profit for the quarter rose 5% to €574 million, missing analyst consensus estimates of €615–623 million by roughly 8%. The shortfall stemmed from a 30% year-on-year surge in marketing expenditure tied to World Cup campaigns, an investment that boosted brand visibility but compressed margins.investing+1

On the revenue side, the picture was far stronger. Net sales climbed 14% on a currency-adjusted basis to a record €6.74 billion, above the €6.63 billion analysts had projected. Growth was driven by double-digit gains across all regions except Europe, with China sales rising 19% and running and football categories leading the way. Adidas sponsored 14 national teams in the June tournament, including both finalists Argentina and Spain.rte+2

Foot traffic at Adidas retail stores in the United States spiked 44.7% year-on-year in the week of June 15, the first full week of World Cup group-stage action, according to data from Placer.ai.rte

Unchanged Profit Outlook and CFO Departure Compound Selloff

Despite the revenue beat, Adidas left its full-year operating profit target unchanged at around €2.3 billion, disappointing investors who had anticipated an upgrade — analysts had modeled closer to €2.4 billion. The company did raise its currency-adjusted revenue growth forecast to 9–10% from a prior "high single-digit" outlook.reuters+2

"We think the adverse share price reaction this morning is a cocktail of Harm Ohlmeyer not extending his contract coupled with the 8% EBIT miss," said Felix Jonathan Dennl, analyst at Frankfurt-based Metzler.rte

The company announced that long-serving CFO Harm Ohlmeyer will not renew his contract after nearly 30 years with the firm. Birgit Kretschmer is set to assume the role by year-end 2026.cityam+1

Broader Market Under Pressure

The selloff in Adidas dragged on Germany's DAX, which fell 0.5% to around 25,353 points, with competitor Puma also declining in sympathy. The broader European mood was cautious after the U.S. Federal Reserve held its benchmark rate steady at 3.5%–3.75% on Wednesday, with three FOMC members voting for an increase and Fed Chair Kevin Warsh offering little guidance on the future path.marketscreener

CEO Bjørn Gulden framed the heavy spending as strategic. "The growth related to the World Cup was accelerated by our strategy of increasing product availability in the interest of our consumers and retail partners versus optimising inventories," he said.rte