Adidas boosts shareholder returns as profits jump 54% in 2025

Adidas has announced a share buyback programme of up to €1 billion, following record annual sales in 2025 that the company said were supported by stable pricing even as US tariff concerns weighed on the broader retail sector.

The German sportswear group said the buyback, scheduled to begin in February, will be funded through strong cash flow generation in 2026. The company also plans to cancel the repurchased shares.

The announcement comes after Adidas reported full-year sales growth of 4.8%, taking revenue to a record €24.8 billion in 2025. Fourth-quarter revenue rose 1.9% to €6.08 billion, though the company flagged currency headwinds of around €1 billion during the year.

Operating profit surged 54% to €2.06 billion, according to preliminary figures, with Adidas pointing to double-digit growth across all regions. While sales fell slightly short of market expectations for both the full year and the fourth quarter, profitability exceeded prior-year levels, reflecting tighter cost control and improved execution.

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Adidas said it had managed to limit discounting and maintain strong full-price sales, easing concerns raised late last year when the company warned that retailer promotions and cautious consumers could dent margins amid tariff-related uncertainty.

Despite the strong operational performance, Adidas shares remain under pressure, down about 15% so far this year. Analysts have attributed the stock’s weakness to a challenging global retail environment, increased competition from newer sportswear brands such as On and Asics, and renewed momentum at US rival Nike.

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Frankfurt-listed shares rose more than 2% following the buyback announcement. Adidas said it will release its full-year results and detailed outlook for 2026 in early March.