Adidas achieves record revenue in the third quarter, with Greater China growing by 13%, signaling channel expansion

Adidas has maintained its growth momentum in the Chinese market, with channel partners showing a stronger willingness to open new stores.

On October 29, Adidas released its Q3 2026 financial report. During the reporting period, the company’s global revenue grew 9% year-on-year to €7.252 billion, setting a new quarterly record; operating profit rose 37% year-on-year to €1.008 billion, also a record high.

Within this, Greater China revenue reached €1.138 billion, a 13% year-on-year increase at constant exchange rates, marking 14 consecutive quarters of growth. For the first three quarters, cumulative revenue in Greater China reached €3.227 billion, up 15% year-on-year.

Among major global markets, Greater China exhibited especially strong growth.

In the third quarter, Adidas revenue in the North American market increased by 12%, with Japan and South Korea up 19%, while the European market fell by 4%. This divergence reflects varying sports consumption demand and channel environments across regions.

In contrast to Adidas, Nike’s Greater China business has recently faced declining revenues and adjustments in wholesale channels. The competitive landscape among international sports brands in China continues to evolve.

During the earnings call held the same day, Adidas CEO Gulden further revealed that many distribution partners in China had requested to open more stores. He stated that Adidas currently has strong brand momentum in China, and the company is focused on using this opportunity to drive long-term growth.

Product structure adjustment is proceeding in tandem with changes in distribution channels.

In the third quarter, Adidas’s global performance sports business grew by 14% at constant exchange rates, with the football, running, and training categories all achieving double-digit growth.

Apparel showed an even more impressive performance, growing 19% year-on-year, while overall footwear revenue remained largely flat.

Behind this difference, the classic casual shoe market is undergoing adjustment.

In recent years, retro styles like Samba and Gazelle have played a key role in reviving the Adidas brand. But with more similar products on the market, inventories of casual shoes in Europe and the US have increased and discount competition has intensified.

Gulden stated during the earnings call that the company hopes to avoid the cyclical fluctuations caused by over-reliance on single trendy products. When growth in casual shoes slows, the company aims to create new growth drivers through performance footwear and apparel.

The Chinese market in particular is a key arena for Adidas to drive product innovation and localize operations.

According to company disclosures, over 95% of Adidas products sold in China are made in China, and more than 65% are designed at the Shanghai Creative Center. Of the product lines designed by this center, 25% have already entered overseas markets.

In the third quarter, Adidas's global direct-to-consumer business grew 17% at constant exchange rates, with e-commerce up 18%, directly operated retail up 16%, and wholesale up only 2%.

The company explained that the slower growth in wholesale business was partly due to significant inventory pressure in the European market, prompting Adidas to proactively control shipments to maintain its product pricing structure.

Rather than boosting short-term revenue by increasing distributor inventory, the company now emphasizes actual end sales and full-price management.

On the profitability side, Adidas’s gross margin in the third quarter was up 2.5 percentage points year-on-year to 54.3%. However, around €200 million in US tariff refunds contributed in part to the profit improvement this quarter, so not all of the 37% increase in operating profit can be attributed to core business performance.

Based on third quarter performance, the company has raised its full-year 2026 operating profit forecast from €2.3 billion to €2.5 billion, expecting annual revenue growth of 9–10% at constant exchange rates.