ADIDAS: A TARIFF REFUND OF AROUND €200M IS 74% OF THE RISE IN THIRD-QUARTER OPERATING PROFIT; WITHOUT IT THE OPERATING MARGIN IS ABOUT 11.1%, LEVEL WITH LAST YEAR
By Pau Almar · Published
9M 2026 · 29 OCTOBER 2026
adidas AG reported third-quarter net sales of €7,252m, up 9.4% and 7% currency-neutral, and operating profit of €1,008m, up 37.0%. The company recorded a US tariff refund of around €200m in gross margin. Without it, VGR arithmetic gives operating profit of about €808m, up about 9.8%, an operating margin of about 11.1% against 11.1%, and a gross margin of about 51.6% against 51.8%.
The operating profit outlook moved to around €2.5bn from around €2.3bn. The company describes the change as around €100m from higher profitability plus the refund of around €200m, less around €100m reinvested in the fourth quarter. The half-year report stated that potential refunds were not in the €2.3bn. Without the refund the outlook is about €2.3bn.
// KEY NUMBERS
9M 2026 · nine months to 30 September 2026
| Revenue | EUR 20,587m |
|---|---|
| Reported growth | +9.9% |
| Constant-currency growth | +11% |
| Gross margin | 52.7% |
| Operating margin | 11.1% |
| Net income | EUR 1,586m |
Currency-neutral growth was 14% in the second quarter and 7% in the third; nine months stand at 11%. Europe fell 4%. The company names a conservative sell-in and an SAP migration that moved shipments into the fourth quarter, without sizing the shift, and expects high-single-digit growth in Europe in that quarter.
Apparel grew 22%, and 19% currency-neutral, and rose to 40.0% of sales from 35.9%. Footwear grew 2% and was flat currency-neutral. DTC grew 20% and wholesale 4%. Performance rose 14% currency-neutral and Lifestyle 3%.
Inventories were €5,739m, down 4% on June and up 2% currency-neutral on last September. Operating working capital rose 8.1%. Adjusted net borrowings were €4,646m against €4,787m, 1.3x EBITDA against 1.6x, after a €1bn buyback and a €491m dividend.
Source: adidas AG, Q3 2026 results release, 29 October 2026 ↗
Analysis by Pau Almar, VGR.
VGR analysis is an independent commercial reading of publicly disclosed company information, written from the perspective of a fashion retail sector operator. It is not investment research and it is not advice to buy, sell or hold any security. VGR is not a regulated financial adviser. Figures are taken from official company materials; figures derived by VGR are labelled as such. Readers should reach their own conclusions and take professional advice where appropriate.