Adidas has reported record quarterly revenue, lifted by strong demand for its sportswear during a major football tournament. The German company said sales rose sharply on a currency-adjusted basis compared with a year earlier.
The results were boosted by the company’s prominence at the tournament, where its products featured heavily. Marketing tied to such events is costly, which tempered the growth in operating profit even as revenue climbed.
The period also brought a change in leadership, with a new chief financial officer taking over at the start of September. The incoming finance chief succeeds a long-serving executive who spent nearly three decades with the company.
Adidas has worked to strengthen its business under its current chief executive, focusing on its core brand and product lines. Record sales suggest that effort has gained traction with consumers.
Sportswear companies often see swings in demand around big sporting events, and managing marketing spending against the resulting sales is a constant balance. The latest quarter showed both the upside and the cost of that dynamic.
With new leadership in its finance function, the company enters the next phase with a mix of strong momentum and the ongoing task of keeping profitability in step with growth.
