Outlook

In 2025, we expect macroeconomic challenges and geopolitical tensions to persist. While this may negatively affect consumer sentiment and discretionary spending power, the global sporting goods industry is set to continue its positive development. Despite these challenges, we expect to gain further market share and grow the company’s currency-neutral sales at a high-single-digit rate in 2025. This reflects continued double-digit growth for the adidas brand. With an ongoing focus on profitable growth and operating leverage, we project to further increase operating profit to a level of between € 1.7 billion and € 1.8 billion in 2025.

Forward-looking statements

This Management Report contains forward-looking statements that reflect Management’s current view with respect to the future development of our company. The outlook is based on estimates that we have made on the basis of all the information available to us at the time of completion of this Annual Report. In addition, such forward-looking statements are subject to uncertainties which are beyond the control of the company. In case the underlying assumptions turn out to be incorrect or described risks or opportunities materialize, actual results and developments may materially deviate (negatively or positively) from those expressed by such statements. adidas does not assume any obligation to update any forward-looking statements made in this Management Report beyond statutory disclosure obligations. SEE RISK AND OPPORTUNITY REPORT

Global economic growth to remain constant in 2025¹

Global gross domestic product (GDP) growth is projected to remain constant at 2.7% in 2025, influenced by the ongoing impact of tight monetary policies, restrictive financial conditions, and sluggish global trade. Although inflation rates have declined, they remain above target levels in most advanced economies, which means that monetary policies are expected to stay restrictive in the near term. In addition, geopolitical conflicts continue to affect the global economy. Advanced economies are anticipated to grow by only 1.7%, while developing economies are expected to see better conditions with a growth forecast of 4.1% in 2025. However, there are still significant risks, including weaker-than-expected performance in major economies such as Greater China, North America, and Europe. Additionally, geopolitical conflicts and political developments could lead to higher tariffs or otherwise disrupt global trade. Potential supply chain disruptions, spikes in energy prices, and climate-related disasters also remain critical concerns for the global economy.

Sporting goods industry to continue its positive trajectory in 2025

After demonstrating resilience in 2024, the global sporting goods industry is expected to continue its positive trajectory in 2025. The industry is expected to benefit from sustained consumer interest in health and fitness, with a continued emphasis on athleisure and rising sports participation rates. Product innovation, both for elite and everyday athletes, is expected to further drive consumer engagement. Additionally, the rising importance of community events in promoting sports participation is becoming increasingly evident. Local sports events and training programs are playing a significant role in encouraging active lifestyles and fostering a sense of community. However, the industry is expected to face several challenges in 2025. Still elevated inflation and interest rates are likely to limit discretionary spending power. At the same time, geopolitical conflicts and political developments may lead to global trade disruptions. Against this backdrop, companies’ ability to adapt to changing consumer preferences and macroeconomic conditions will be crucial.

Currency-neutral sales to increase at a high-single-digit rate in 2025

We expect the company’s currency-neutral sales to increase at a high-single-digit rate in 2025, reflecting continued double-digit growth for the adidas brand. Our increased focus on local consumer preferences combined with a significantly better, broader, and deeper product range as well as much improved retailer relationships will be the main drivers of our projected top-line increase. In addition, impactful marketing initiatives will further add to our brand momentum and fuel sales growth. Having completed the sale of the remaining Yeezy inventory in 2024, the company’s outlook does not include any Yeezy revenues in 2025 (2024: around € 650 million).

Significant growth expected in all market segments

Currency-neutral revenues are expected to grow strongly in all markets in 2025. Specifically, we expect sales for the adidas brand to grow at a double-digit rate in North America, Greater China, Emerging Markets, and Latin America. Revenues in Europe and Japan/South Korea are projected to increase at a high-single-digit rate.

Operating profit to increase further to between € 1.7 billion and € 1.8 billion

While we will continue to increase our marketing and sales investments, operating overhead efficiencies will allow us to leverage our strong top-line growth. This is expected to lead to further significant bottom-line improvements in 2025. As a result, we project operating profit to increase to a level of between € 1.7 billion and € 1.8 billion in 2025. Having completed the sale of the remaining Yeezy inventory in 2024, the company’s outlook does not include any profit contribution from Yeezy in 2025 (2024: around € 200 million).

Average operating working capital of between 21% and 22%

During 2024, average operating working capital as a percentage of sales decreased by 5.9 percentage points to 19.7%, mainly reflecting effective measures to return to a healthy inventory position. From this healthy inventory position, our focus in 2025 will be on enabling continued top-line growth as well as on supporting our retail and manufacturing partners. Consequently, we forecast average operating working capital as a percentage of sales to increase moderately to a level of between 21% and 22% in 2025.

Capital expenditure of around € 600 million

In addition to leveraging the company’s existing state-of-the-art infrastructure, we will continue to invest into our business. As a result, capital expenditure is expected to reach a level of around € 600 million in 2025 (2024: € 540 million).

Management proposes dividend payment of € 2.00 per share

The adidas AG Executive and Supervisory Boards will recommend paying a dividend of € 2.00 per dividend-entitled share to shareholders at the Annual General Meeting on May 15, 2025 (2024: € 0.70). The total payout of € 357 million (2024: € 125 million) reflects a payout ratio of 43% of net income from continuing operations. The proposal reflects the company’s significantly better-than-expected performance in 2024, its improved financial profile, as well as Management’s confident outlook for the future. This payout ratio is within the target range of between 30% to 50% of net income from continuing operations as defined in our Financial Policy. SEE OUR SHARE

1 Source: World Bank Global Economic Prospects.