Adidas posted strong results for the second quarter of 2025, with global revenue rising 12% year-on-year (YoY) to EUR 6 billion (USD 6.8 billion). Operating profit jumped 58% to EUR 546 million (USD 622.4 million), while gross margin improved to 51.7%, aided by reduced discounting, lower freight and product costs, and a smaller impact from currency fluctuations and tariffs.
For the first half of the year, revenue climbed 14% to EUR 12.105 billion (USD 13.8 billion), while operating profit surged 70% to EUR 1.2 billion (USD 1.4 billion).
The gains reflect Adidas’ two-pronged strategy centered on performance sports and sports fashion. The running category stood out, with global sales of the Adizero line rising more than 25% YoY. The product gained traction in China as well, where Adidas maintained visibility by supporting marathons and track and field events and sponsoring several top-performing Chinese athletes. The Adizero Evo SL alone accounted for nearly 30% of the brand’s running footwear growth in the second quarter, according to the company.
Adidas also continues to grow its “in China, for China” strategy. The Greater China business recorded its ninth consecutive quarter of what the company described as “quality growth,” with Q2 revenue reaching EUR 798 million (USD 910 million), up 11% YoY. For the first half of 2025, revenue in the region rose 13% to EUR 1.827 billion (USD 2.1 billion).
A newly opened Adidas Originals flagship on Anfu Road in Shanghai exemplifies this approach. The store, launched this summer, introduced a pet-themed product line developed by Adidas’ Shanghai-based creative center, which is now in its 20th year. The location also features collaborations with designers such as Edison Chen and Caroline Hu.
The company is also deepening ties with top Chinese institutions such as Tsinghua University and Fudan University, while supporting campus sports and local designer collaborations. These efforts are intended to align product development and branding more closely with Chinese consumer tastes.
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Despite the positive momentum, Adidas faces growing cost pressures. CEO Bjorn Gulden said during the earnings call that the company incurred tens of millions of euros in tariff-related expenses in Q2. Adidas expects an additional EUR 200 million (USD 228 million) in product costs in the US market this year. Analysts have warned that recently imposed US tariffs on imports from Vietnam and Indonesia, which account for 27% and 19% of Adidas’ production respectively, could disrupt supply chains and trigger adjustments in pricing or manufacturing strategy.
In response, Adidas has reportedly been stockpiling inventory in the US, following the lead of competitors such as Puma, according to Reuters.
Still, the company is maintaining its full-year outlook, forecasting double-digit revenue growth. It plans to counter external challenges by launching a more competitive product lineup, strengthening retail partnerships, and improving marketing efficiency. On a currency-neutral basis, Adidas expects full-year revenue to grow at a double-digit pace, with operating profit projected to reach EUR 1.7–1.8 billion (USD 1.9–2.1 billion).
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by He Zhexin for 36Kr.