The stock of Adidas (ADDDF) is down 8% after the European sneaker giant posted forward guidance that disappointed investors.
The German-based athletic sportswear company said it is struggling with unfavorable currency swings and U.S. tariffs.
Consequently, Adidas forecast 2026 revenue growth in the high single digits from 2025's total of 24.8 billion euros ($28.86 billion U.S.).
Operating profit is expected to increase to around 2.3 billion euros, despite a 400-million-euro negative impact from U.S. tariffs.
The profitability outlook was 15% below analysts’ consensus forecast, sending the stock lower as a result.
The latest outlook was issued along with fourth-quarter 2025 financial results that fell short of analysts’ expectations.
Adidas’ sales and profit for Q4 2025 each missed the mark at 6.1 billion euros and 164 million euros in constant currencies.
Beyond U.S. tariffs and currency fluctuations, Adidas is also dealing with excess supply and changing consumer preferences in the key market of China.
Along with its latest earnings print, Adidas announced that it has extended CEO Bjørn Gulden’s contract until 2030, a strong vote of confidence in the chief executive officer and his strategy.
Gulden was brought in during 2023 to help revive the Adidas brand.
ADS stock has declined 50% over the last five years to trade at 136.40 euros per share.
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