Adidas Faces Profit Decline Amid Heavy World Cup Marketing Costs
WHO:
Macau Business - Adidas, a German sportswear maker, reported results.
SGB Media - Bjørn Gulden, CEO of Adidas, commented on the company's performance.
ADWEEK - Timothée Chalamet, featured in Adidas' World Cup marketing campaign.
Sports Business Journal - 14 national teams wore Adidas kits during the World Cup, including finalists Spain and Argentina.
WHAT:
Macau Business - Adidas spent over 200 million euros more on marketing than the same period last year, bringing total marketing outlays to almost one billion euros for the quarter.
Sports Business Journal - Operating income came in at $657 million, below the $706.9 million average of analyst estimates.
ADWEEK - Adidas' total marketing bill in Q2 reached $1.05 billion (€924 million).
Sports Business Journal - Adidas generated about $1.72 billion in World Cup-related sales since the end of 2025.
ADWEEK - Apparel revenues grew 35% in the quarter, while footwear sales increased 1% and lifestyle sales were up 2%.
Sports Business Journal - Adidas shares fell as much as 18% in Frankfurt, marking its biggest intraday decline.
Macau Business - Adidas reported a core profit of 574 million euros ($657 million) for the three months to the end of June, which was about eight percent below expectations.
SGB Media - Adidas' shares fell approximately 19 percent after the earnings release, marking its biggest daily decline on record.
ADWEEK - Adidas' total marketing spend in Q2 reached $1.05 billion (€924 million), with an additional $243 million (€212 million) spent on World Cup-related marketing.
Sports Business Journal - Adidas generated about $1.72 billion in World Cup-related sales, selling four times as many jerseys and twice as many footballs compared to the previous tournament.
ADWEEK - Adidas raised its full-year revenue growth guidance to 9-10%, while maintaining its profit guidance at around $2.6 billion (€2.3 billion).
WHERE:
SGB Media - The earnings report and share decline occurred on the Frankfurt Stock Exchange.
ADWEEK - The World Cup marketing campaign included activations in various global markets.
WHEN:
SGB Media - The earnings report was released on a Thursday, with the date specified as July 30, 2026.
ADWEEK - Birgit Kretschmer is set to succeed Harm Ohlmeyer as CFO effective September 1, 2026.
WHY:
Sports Business Journal - The profit miss was attributed to heavy marketing outlay, which limited operating profit.
Macau Business - The profit miss was attributed to heavy marketing costs associated with the World Cup.
SGB Media - Increased marketing spending was aimed at stimulating demand during the World Cup.
HOW:
ADWEEK - The marketing campaign "Backyard Legends" delivered more than 9 billion views and over 400 million engagements across the brand’s digital ecosystem, making it the most successful campaign in the brand’s history.
ADWEEK - Adidas utilized a marketing campaign titled "Backyard Legends" to engage consumers and promote its products during the World Cup.
SGB Media - The company maintained a conservative sell-in approach to protect its product franchises and full-price realization in a promotional marketplace.
(UPDATED July 30, 2026 14:41 UTC)
Adidas has reported a significant increase in marketing expenses, spending over 200 million euros more than last year, which brought their total marketing outlay for the quarter to about one billion euros. Despite generating approximately $1.72 billion in World Cup-related sales since the end of 2025 and seeing a 35% growth in apparel revenues, the company fell short of analyst expectations with an operating income of $657 million, leading to a sharp decline in shares of up to 18% in Frankfurt. Their recent campaign, "Backyard Legends," proved to be a massive success, achieving over 9 billion views and more than 400 million engagements, marking it as the most successful campaign in Adidas' history.
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(UPDATED July 30, 2026 13:30 UTC)
Adidas has reported a core profit of 574 million euros, which is about eight percent below expectations, leading to a significant drop in shares by approximately 19 percent, marking its biggest daily decline on record. The company spent a staggering $1.05 billion on marketing in the second quarter, including $243 million specifically for World Cup-related promotions, and generated around $1.72 billion in sales during the tournament, selling four times as many jerseys compared to the last World Cup. Looking ahead, Adidas has raised its full-year revenue growth guidance to between nine and ten percent, while Birgit Kretschmer is set to take over as CFO on September 1, 2026.