The sportswear giant Adidas is making significant headway with its ambitious share repurchase initiative, having already withdrawn over 1.6 million of its own shares from the market. This move forms part of a broader one-billion-euro buyback scheme. As this capital return program accelerates, investor attention is firmly fixed on March 4th. On that date, the DAX-listed group will not only release its final figures for 2025 but will also unveil its strategic outlook for 2026 for the first time.
Strong Preliminary Results Underpin Strategy
The foundation for this substantial capital allocation decision is a set of robust preliminary results for the 2025 fiscal year. The Adidas brand achieved currency-adjusted revenue growth of 13%, marking its second consecutive year of double-digit expansion. In the fourth quarter alone, sales increased by 11%, reaching €6.076 billion.
Profitability metrics showed marked improvement. The full-year gross margin rose to 51.6%, a gain achieved despite headwinds from unfavorable currency effects and increased tariffs. Operating profit surged by more than €700 million to €2.056 billion. Consequently, the operating margin expanded from 5.6% to 8.3%, signaling a substantial recovery in the company’s earnings power. Management cites this strong operational cash flow generation as the enabler for the share repurchase program, its first of this scale since 2022.
Systematic Repurchases Reduce Share Count
Executing this plan, the Herzogenaurach-based company had acquired more than 1.63 million of its own shares by February 20th. The purchases were made at average prices ranging between €154.66 and €156.65. These repurchased shares are being retired, a process that reduces the total number of shares outstanding and is intended to increase the value of each remaining share.
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March 4th: A Pivotal Date for Guidance
The upcoming announcement is viewed as a critical test for the sustainability of the current growth trajectory. Market participants anticipate clear guidance on Adidas’s development across all key regions and its future capital allocation policy. The competitive landscape remains intense, with rising challengers like On and Asics applying pressure. Meanwhile, arch-rival Nike is undergoing a major restructuring.
Further strategic shifts are occurring in the industry. The entry of Anta Sports into Puma with a $1.8 billion investment is reshaping global competitive dynamics. Additionally, a landmark partnership is ending: after the 2026 FIFA World Cup, Adidas’s over-70-year association with the German Football Association (DFB) will conclude, as the federation switches to Nike.
Major Sporting Events Offer Catalysts
The 2026 FIFA World Cup itself represents a significant revenue opportunity, projected to deliver an extra €1 billion in sales. This boost is expected to materialize as €200 million in Q4 2025 and a further €800 million in the first half of 2026. This packed sporting calendar could provide additional momentum for growth.
The central question for investors is whether Adidas can maintain the double-digit growth rates of the past two years. The guidance provided on March 4th will deliver much-needed clarity, revealing the underlying substance of the company’s operational recovery and its roadmap for the future.
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