Adidas plans 1-billion-euro share buyback after profits jump

Published Fri, Jan 30, 2026 · 11:19 PM

[FRANKFURT] Adidas reported stronger-than-expected fourth-quarter profits and announced a fresh share buyback, as it looks to maintain its momentum with retro sneakers – alongside new running and football products.

The German sportswear company generated operating profit of 164 million euros (S$247.9 million) in the fourth quarter, it said in a statement of preliminary figures late on Thursday (Jan 29).

That exceeded analyst estimates, and drove full-year operating profit slightly above its forecast from October.

The company announced a buyback programme of 1 billion euros that will start in February, and be financed through the company’s cash flow this year. It intends to terminate the repurchased shares.

Adidas shares rose by as much as 5.1 per cent in early Frankfurt trading, but they have been down by more than 40 per cent for the past 12 months. 

Currency-neutral sales reached 6.08 billion euros for the quarter, slightly behind analyst estimates.

Adidas’ performance has suffered from the weaker US dollar and tariffs, with currency swings hitting its revenue by more than 1 billion euros in 2025, it said.

CEO Bjorn Gulden is hoping to develop more growth engines – particularly with sports products – after capitalising on robust demand for its fashion-oriented retro sneaker models, including the Samba and Gazelle.

He is entering his fourth year as CEO, which he has described as the time when Adidas should become a “healthy company” again. He has talked of striving to grow sales at double-digit rates, and reach an operating profit margin of at least 10 per cent. 

Investors have been sceptical about on Adidas’s ambitions, with some analysts suggesting the world’s years-long sneaker boom is slowing.

The fact that Adidas’s revenue is growing strongly in all regions – and that it is launching a new buyback programme – shows that management is confident in the brand’s ability to maintain its momentum, Adam Cochrane, an analyst at Deutsche Bank, said in a note.

Even so, “all eyes will be on the guidance given in March”, when Adidas is scheduled to publish its full financial results.

Gulden is aiming to keep grabbing market share from rival Nike, which is looking to stage a comeback after years of struggles. Both companies could get a boost from the upcoming World Cup in North America this year. BLOOMBERG