Adidas shares plummet after record sales during the World Cup

Shares of the German sportswear manufacturer Adidas fell sharply after the publication of quarterly results. The company set a new revenue record thanks to the FIFA World Cup, but increased advertising expenses limited profit growth and disappointed investors.

During trading on July 30, Adidas shares dropped nearly 19%. This was the largest intraday decline in the company's stock in history. By the Frankfurt Stock Exchange close, the decline slowed to 11.5%, with one share costing 161.25 euros.

Adidas' revenue in the second quarter of 2026 grew by 14% on a currency-neutral basis and reached a record 6.74 billion euros. In euro terms, growth was 13% compared to the same period last year.

One of the main sales drivers was the FIFA World Cup. Adidas supplied kits to 14 national teams, including the finalists Spain and Argentina. The company also produced the tournament's official match ball and kitted out the referees.

Sales at the sporting goods division rose by 39%, primarily driven by football and running products. Apparel revenue increased by 35%, accessories by 20%, while footwear sales added only 1%. Direct-to-consumer sales through physical and online stores grew by 25%.

According to the Financial Times, Adidas sold four times more team jerseys and twice as many footballs as during the previous World Cup in Qatar. Tournament-related sales brought the company approximately 1.5 billion euros.

However, the massive marketing campaign required significant spending. Adidas' marketing and promotional expenses rose by 30% from 712 million to 924 million euros. Thus, the company spent 212 million euros more on advertising than a year earlier.

Adidas hosted fan zones, opened temporary stores, and promoted the Backyard Legends campaign featuring Lionel Messi, Lamine Yamal, Jude Bellingham, Timothée Chalamet, and Bad Bunny. According to the company, the marketing content garnered more than 9 billion views and over 400 million engagements across digital channels.

Adidas' operating profit rose only 5% to 574 million euros. Analysts on average had expected around 623 million euros. Operating margin, meanwhile, dipped from 9.2% to 8.5%.

Net profit from continuing operations grew by 6% to 398 million euros but also fell short of market expectations. Investors reacted negatively to the fact that record revenue did not translate into a comparable profit increase.

Further disappointment came from the company's outlook. Adidas raised its expected annual revenue growth from a high-single-digit basis to 9-10%, but left its operating profit forecast unchanged at around 2.3 billion euros. Analysts had anticipated about 2.5 billion euros.

Adidas CEO Bjørn Gulden said management was surprised by the stock market's reaction. According to him, the company delivered on its own promises, and the quarterly results were stronger than internal expectations.

Despite the share drop, Adidas aims to maintain high sales momentum in the second half of the year. The company notes resilient demand for apparel and sportswear but warns of high competition, discounting in the European market, currency risks, and additional expenses related to US tariffs.

Based on materials from: Adidas, Financial Times