Adidas posted record second-quarter net sales of €6.7 billion on Thursday, a 14% increase in currency-neutral terms, but operating profit rose just 5% to €574 million as the company spent €212 million more on marketing tied to the FIFA World Cup than it did in the same period…
st year. The operating profit result fell short of analyst expectations of €623 million, according to the Wall Street Journal
Adidas stock fell more than 18% in European trading Thursday — a decline that, if it holds, would mark the steepest single-day percentage loss in the company’s history since its November 1995 IPO. The company raised its full-year revenue guidance, now expecting currency-neutral revenues to grow between 9% and 10%, up from a previous forecast of high-single-digit growth, the company said. The company left its full-year operating profit target of approximately €2.3 billion intact.
Adidas added that its guidance excludes any benefit from possible U.S. tariff refunds, which the company estimates could amount to between $250 million and $300 million if recovered. Adidas’s World Cup marketing campaign featured actor Timothée Chalamet, soccer stars Lionel Messi, Jude Bellingham, Lamine Yamal, and musician Bad Bunny. The company outfitted 14 national teams, provided gear for match officials, and supplied the official ball for the tournament.