The strongest first quarter in history! Adidas' operating profit nearly doubled, far outperforming Nike

Despite the escalating tensions in global trade, Adidas's first-quarter performance surprised the market, with operating profit nearly doubling and achieving the highest sales record for the first quarter in history.

On April 24, it was reported that the German sportswear giant Adidas's first-quarter operating profit was €610 million, far exceeding analysts' expectations of €546 million, and up from €336 million in the same period last year.

At constant exchange rates, operating revenue increased by 13% year-on-year to €6.1 billion, setting a record for the highest sales in the company's history for the first quarter.

Adidas's new CEO Bjørn Gulden stated that in today's turbulent environment, all markets and channels achieved double-digit growth, showcasing the strength of the brand.

Despite a strong performance in the first quarter and having raised its annual forecast three times last year, Adidas did not mention its 2025 targets in its preliminary first-quarter results.

Gulden had previously indicated a cautious approach to long-term guidance, citing ongoing geopolitical uncertainties and changes in consumer sentiment. Adidas will release its complete quarterly results on April 29.

While Adidas delivered impressive results, its American competitor Nike is facing difficulties, not only suffering a significant drop in stock prices due to tariff concerns but also facing pressures from slowing sales and profit margins.

Divergence Among Sneaker Giants: Adidas Rising, Nike Under Pressure

Adidas has benefited from a surge in demand for retro styles over the past two years, particularly its Samba and Gazelle sneakers, which have seen sales increases across various markets.

Reportedly, after Gulden took over as CEO in 2023, he successfully led Adidas through a significant transformation, especially after the termination of its collaboration with rapper Kanye West's Yeezy in 2022. The company completed the sale of its final Yeezy inventory at the end of last year.

In contrast, Nike is reportedly facing not only slowing sales and profit margin pressures but also increasing competition from smaller running shoe brands like On and Hoka.

Additionally, Nike predicted last month that revenue would see a "mid-teens percentage" decline in the current quarter ending in May.

Since the U.S. announced "reciprocal tariffs" on Vietnam and other countries in early April, although the tariffs have been suspended, they have already disrupted global supply chains and undermined investor confidence.

Affected by negative factors such as tariff concerns, Nike's stock price has fallen more than 12% since early April, while Adidas has recovered all its losses