Adidas AG shares leaped 6% Friday after the German sportswear giant unveiled preliminary 2025 results showing record annual revenue of €24.811 billion, up from €23.683 billion in 2024 despite a currency headwind exceeding €1 billion. Currency-neutral sales for the adidas brand surged 13% for the second straight year, propelled by double-digit gains across all markets and channels. The announcement, coupled with a €1 billion share buyback program set to launch in early February, underscored the company’s rebound under CEO Bjørn Gulden.

Preliminary figures revealed fourth-quarter revenue climbing to €6.076 billion from €5.965 billion a year earlier, with adidas brand currency-neutral growth at 11%. Adjusting for €50 million in prior-year Yeezy sales, overall currency-neutral revenue rose 10%. Operating profit more than doubled to €164 million in the quarter from €57 million, while full-year operating profit soared by over €700 million to €2.056 billion, lifting the margin to 8.3% from 5.6%. Gross margin expanded 0.8 percentage points to 51.6%, defying adverse currencies and higher U.S. tariffs, as detailed in Adidas’s official press release .

Brand Momentum Powers Double-Digit Expansion

CEO Bjørn Gulden hailed the performance as ‘quality growth,’ emphasizing high full-price sell-throughs and controlled discounts amid ‘external turbulence.’ ‘Driving double-digit growth in the fourth quarter despite all the external turbulence, and more than doubling our operating profit in the quarter made the year end very well,’ Gulden stated. The results beat LSEG analyst expectations of €24.95 billion for the year and €6.189 billion for Q4, per Reuters .

Europe’s Stoxx 600 climbed 0.5% by mid-morning London, buoyed by the earnings season. Adidas shares hit €152.15, reflecting investor enthusiasm for the turnaround since Gulden’s 2023 arrival, which has seen the stock rise over 66% despite a 15% year-to-date dip amid retail pressures and rivals like On Holding and Asics vying for attention.

Buyback Signals Cash Flow Confidence

The €1 billion repurchase, approved by the supervisory board and funded by 2026 cash flows, aims to cancel shares, signaling robust fundamentals. ‘Our confidence in adidas future top- and bottom-line growth and cash flow generation is also the reason why we now have decided to launch a share buyback. We will buy back shares up to €1 billion this year,’ Gulden affirmed. Full 2025 results, 2026 guidance, and capital allocation updates follow on March 4, according to WWD .

This caps a year of brand revival post-Yeezy exit, with no Yeezy revenue in 2025 versus €650 million in 2024. Double-digit growth spanned footwear, apparel, and regions from North America to Greater China, contrasting Nike’s struggles. Gross margin resilience at 51.6%—historically high sans Yeezy—highlights pricing power and supply chain efficiencies, as noted in Retail Insight Network .

Turnaround Triumph Over Headwinds

Adidas’s path from 2023 losses to 2025 profitability reflects Gulden’s ‘global brand with a local mindset’ strategy, prioritizing consumer proximity in sport, lifestyle, and fashion segments. Q3 2025 had already set records with €6.63 billion revenue, upgrading full-year EBIT to around €2 billion, per earlier Adidas updates. Inventories rose to support growth, with leverage at a healthy 1.6x.

Analysts view the buyback as validation of sustained momentum. Jefferies noted ‘impressive brand heat and gross margin rebuild’ in prior commentary, questioning long-term potential amid peer markdowns. Shares traded 2.4% higher post-announcement, per Reuters, as European peers like CaixaBank also lifted indices with strong profits.

Outlook Beyond Olympics and World Cup

Gulden eyes market share gains into 2026, fueled by Winter Olympics in Italy and FIFA World Cup. ‘We are very confident that all these segments will continue to grow all over the world and we are also very confident that we will continue to take market share,’ he said. The program finances repurchases via cash flows, avoiding dilution.

Preliminaries show adidas brand sales up 13% currency-neutral, excluding Yeezy’s prior boost. CNBC reported the initial 5.7% share jump alongside Stoxx 600’s 0.64% gain, DAX up 0.84%, in its market update . X posts from @allday_stocks highlighted €24.8 billion revenue and 8.3% margin, echoing buyback optimism.

Strategic Edge in Competitive Arena

While Nike grapples with U.S. revamps, Adidas leverages event-driven demand and full-price strength. 2025’s €2.056 billion operating profit—54% above forecasts—positions it for double-digit 2026 sales, per guidance previews. Healthy balance sheet supports investments without straining leverage.

Full-year revenue growth of 4.8% reported masked stronger underlying trends, with currency drags offset by volume and pricing. Regional double-digits in North America, Latin America, and emerging markets signal broad recovery, as WWD detailed.

Investor Focus Sharpens on March Reveal