By Andrea Figueras

Adidas is scheduled to report results for the second quarter on Wednesday. Here is what you need to know.

SALES FORECAST: The German sporting-goods company is expected to post net sales of 6.15 billion euros ($7.13 billion) for the second quarter, according to a company-compiled poll of estimates. In the prior-year period, the group logged sales of 5.82 billion euros.

OPERATING PROFIT FORECAST: Analysts expect the group to report quarterly operating profit of 523 million euros, up from 346 million euros previously.

The stock has plunged nearly 16% in the last 12 months and has also fallen about 16% since the start of the year.

WHAT TO WATCH

--OUTLOOK: Adidas should continue to outperform the wider sports goods market in the second quarter and might upgrade its full-year expectations, Deutsche Bank analysts said in a research note. The company reported first-quarter results that came in ahead of expectations, but chose not to raise its targets for the year at the time. Since Chief Executive Bjorn Gulden joined Adidas in 2023, the group has lifted its full-year outlook on several occasions, as part of its strategy to beat and increase expectations. DB says the company should raise its current earnings before interest and taxes outlook of between 1.7 billion euros and 1.8 billion euros for 2025. The question is whether the new guidance will be ahead of current consensus expectations, the analysts said.

--COMPETITION: Adidas should be able to sustain positive momentum, amid concerns about a potential Nike comeback could weigh on the performance of the German group, UBS analysts said in a note to clients. "Historically, the industry has seen periods of outperformance by either Adidas or Nike," the analysts said. Adidas seems to have a better product pipeline, while its peer is still in the process of rebuilding its own, UBS said. Meanwhile, last week German rival Puma issued a profit warning as it seeks a brand reset amid persisting challenges.

--U.S. TARIFFS: Another key topic will be the impact and mitigation measures ahead of tariffs in the U.S. Adidas looks set to manage the risk of President Trump's levies and has a significantly lower exposure to the country than its peers, UBS analysts said. This reduces the potential impact on demand as a result of tariff-related price increases, UBS said. The focus will be on whether the group can maintain its double-digit revenue growth, the analysts added.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

July 29, 2025 09:26 ET (13:26 GMT)

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