German sportswear maker Adidas expects sales in Europe, its largest market, to return to growth in the fourth quarter of 2026, supported by delayed shipments and increased wholesale sales.
The company said on Thursday that the timing shift in revenue and higher wholesale sell-in were expected to drive high-single-digit growth in Europe during the final three months of the year.
The outlook follows a challenging third quarter in the region, where sales declined amid heavy discounting by retailers dealing with high inventory levels and increased promotional activities.
Europe accounts for almost a third of Adidas’ group sales, making the region’s performance significant to the company’s overall results.
Currency-neutral net sales in Europe fell by four per cent to €2.24 billion in the third quarter.
In contrast, Adidas recorded stronger performances in other markets, with sales rising by 12 per cent in North America and 13 per cent in Greater China.
The growth in China comes as Adidas competes with US rival Nike, whose sales in the country have declined for nine consecutive quarters, prompting the company to explore alternative growth markets, including India.
Adidas has been investing in new product styles to strengthen its competitive position, including the launch of its lightest-ever racing shoe, the Adizero Adios Pro Evo 3. The shoe helped Kenyan runner Sabastian Sawe break the two-hour marathon barrier in April.
The company also reaffirmed its previously announced third-quarter results and raised full-year guidance, citing strong sales in its running and football product lines.
Marketing and point-of-sale expenses increased by four per cent to €833 million, reflecting additional brand investments around the World Cup throughout July and the normalisation of marketing spending from August.
Adidas shares rose by 2.5 per cent in early trading on Thursday following the company’s outlook for improved performance in Europe.
Boluwatife Enome
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