Adidas expects Europe sales to return to growth in the fourth quarter as supply chain timing shifts and stronger wholesale deliveries help reverse recent regional declines.
The German athletic apparel giant reported that its European business contracted by 4 percent on a currency-neutral basis during the third quarter, generating €2.24 billion. European retail performance lagged behind other major territories due to heavy promotional discounting, cautious wholesale order patterns, and inventory adjustments across regional retail stores.
Despite the localized dip in its home region, robust consumer demand across North America, Latin America, and Asia pushed group revenues to a record €7.3 billion.
Wholesale Rebound Set to Fuel Fourth Quarter
Company executives explained that the European contraction reflected delivery schedules rather than weakening shopper demand. Several wholesale product shipments originally scheduled for early autumn were reallocated into the fourth quarter, creating an artificial pause in reported regional revenue.
Adidas stated that higher wholesale sell-in figures and stabilized distribution channels will lift European sales by a high single-digit percentage between October and December. Direct-to-consumer purchases across company-owned stores and online portals in Europe continued to record positive single-digit growth throughout the summer.
Chief Executive Bjørn Gulden confirmed that order books across European sporting goods retailers remain solid heading into the holiday shopping season.
Strong Gains in North America and Greater China
While European stores navigated inventory clearances, Adidas achieved double-digit expansion across almost every other major international market. Net sales grew by 12 percent in North America and surged 13 percent across Greater China on a currency-neutral basis.
The company's performance in China highlighted significant market share gains against key global competitor Nike, which has faced extended sales pressures across Asian retail corridors. Gulden noted that Adidas consumer momentum in China remains resilient across lifestyle retro footwear and technical running products.
Group operating profit surged 37 percent year-on-year to hit €1.0 billion for the quarter, marking the highest quarterly operating income in the brand's history.
Raised Full-Year Outlook and Performance Lines
Following the record quarterly result, Adidas raised its full-year financial guidance for 2026. The Herzogenaurach-based company now projects full-year operating profit to reach approximately €2.5 billion, up from its earlier target of €2.3 billion.
Growth continues to be driven by popular performance lines in football and long-distance running, alongside strong consumer adoption of the Adizero racing series. Direct-to-consumer sales worldwide climbed 17 percent, supported by healthy full-price sell-through rates and disciplined stock management.
Financial analysts noted that evidence of stabilizing European wholesale orders provides critical reassurance that the sportswear sector is clearing post-inflationary inventory overhangs.
