Strong Q1 Performance: adidas reported a net sales increase of 13% (currency-neutral) in Q1 2025, with the adidas brand (excluding YEEZY) growing by 17%. Gross profit improved by over 52%, indicating strong demand and effective management of product costs and trade.

EBIT Margin Target Confirmation: The company achieved an operating profit (EBIT) of €610 million (9.9% margin), signalling progress towards their midterm goal of a 10% EBIT margin. They confirmed guidance for a €1.7 billion to €1.8 billion EBIT for the full year, despite uncertainties arising from potential U.S. tariffs.

Challenges Due to Tariffs: The U.S. tariffs pose a significant risk to profit margins. While management believes they can achieve their EBIT guidance under current conditions, the uncertainty surrounding the tariffs could impact both pricing strategies and overall demand in the U.S. market, which only constitutes 20% of their business.