By
Bloomberg
Published
March 5, 2025
Adidas AG expects higher profits in 2025 as the German sports brand expands its lineup of retro sneakers, which have fueled renewed momentum in global sales.
According to a statement released Wednesday that builds on January’s preliminary fourth-quarter earnings report, the company projects an operating profit of €1.7 billion ($1.81 billion) to €1.8 billion this year. While this falls short of analysts’ €2.07 billion average estimate, Adidas is known for its conservative guidance, having raised its outlook three times last year.
The recent strong performance highlights the company’s recovery under CEO Bjørn Gulden, now in his third year leading the brand. The former Puma SE CEO is credited with managing the fallout from Adidas’ terminated partnership with rapper and designer Ye, formerly known as Kanye West. Investors have responded positively to Gulden’s back-to-basics approach, which focuses on sportswear and pragmatic product development. He aims to narrow the gap with Nike Inc., which, despite its struggles, remains the industry leader.
Retro sneakers drive Adidas’ revival
Demand continues to surge for retro sneaker models, including the Samba and Campus, which have helped revive the brand after a series of challenges in recent years. Adidas has also introduced additional throwback styles, such as the SL72 running shoe and Tokyo trainer, catering to the growing appetite for vintage designs.
Due to the sustained popularity of these models, Gulden has postponed the re-release of the 1970s-era Superstar basketball shoes, aiming to prevent oversaturation in the three-stripe sneaker market.
Beyond lifestyle footwear, Adidas is also seeing strong demand for its sports gear, particularly the Predator football boots and the Adizero running shoe franchise, the company said.
Global sales momentum and Yeezy exit
Adidas expects currency-neutral sales to grow at a high-single-digit rate in 2025, which is in line with analyst estimates. Excluding the now-defunct Yeezy franchise, the brand anticipates double-digit growth.
The company reported a 16% sales increase in Greater China and a 25% surge in Europe during the fourth quarter. North American sales rose 15%, marking a significant gain in a region long dominated by Nike, where Adidas has previously struggled.
Adidas completed the sale of its remaining Yeezy inventory in the fourth quarter, generating €650 million in revenue during 2024. The final sales occurred over two years after the brand severed ties with Ye.
Adidas shares have climbed about 32% over the past year, outperforming both Nike and Puma.