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(Sharecast News) - Adidas shares plunged on Thursday after the sportswear group kept its full-year profit guidance unchanged despite raising its sales forecast, with investors appearing disappointed that stronger revenues would not translate into a bigger earnings upgrade.
The Frankfurt-listed stock was down 16.8% at 151.65 by 0946 BST, putting it on course for its largest-ever one-day decline.
Adidas said currency-neutral revenues rose 14% in the second quarter, while reported sales increased 13% to a quarterly record of 6.74bn from 5.95bn a year earlier.
Direct-to-consumer revenues jumped 25%, including 27% growth in ecommerce and a 23% increase across its own stores. Performance revenues grew 39%, led by football and running, while apparel sales surged 35% and accessories increased 20%.
Gross margin improved by 0.8 percentage points to 52.5%, while operating profit rose just 5% to 574m from 546m, despite the strong sales performance. The company said marketing investment was 212m higher due to its World Cup campaigns and activations.
Chief executive Bjrn Gulden said: "The business in the quarter was also unbelievably strong: 14% growth in this volatile environment and an operating profit of 574 million despite us spending 212 million more in marketing underlines the current strength of both the brand and our products and shows what a fantastic job our people around the world are doing."
Adidas now expects currency-neutral sales to grow between 9% and 10% in 2026, up from its previous forecast for high-single-digit growth. However, it continued to forecast operating profit of around 2.3bn, below analysts' projections of nearly 2.5bn, potentially disappointing investors hoping the sales upgrade would be accompanied by higher profit guidance.
Separately, Adidas said Birgit Kretschmer would join its executive board on 1 September and succeed Harm Ohlmeyer as chief financial officer at the end of 2026. Kretschmer, currently CFO of fashion retailer C&A, previously spent 25 years at Adidas.
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