Adidas AG shares are attempting to stabilize near 138.10 euros after a punishing start to the year that saw the stock shed 18 percent of its value. The catalyst for the decline was a stark profit warning, with the company citing a 400 million euro hit from new Asian tariffs and unfavorable currency moves. This news overshadowed what was otherwise the best financial year in the company’s history.
For the full year 2025, Adidas posted record revenue of 24.8 billion euros. Net profit soared by 75 percent to reach 1.34 billion euros. The football business provided a significant boost, with sales of the new German national team away kit already surpassing those of the 2024 European Championship model. With rival Nike set to take over the DFB kit supply from 2027, the current jersey carries added value for collectors.
Yet the market’s focus remains fixed on the substantial headwind. Chief Financial Officer Harm Ohlmeyer pinpointed the core of the problem in Vietnam, which accounts for 27 percent of total procurement volume and roughly 40 percent of all shoe production. This heavy concentration has left the sportswear giant acutely vulnerable to shifting tariff regimes. The 400 million euro burden has pushed back the company’s target for a 10 percent operating margin, originally set for 2026, to 2027 or 2028.
In response to the share price weakness, management is deploying shareholder-friendly measures. A proposed 40 percent dividend increase to 2.80 euros per share for the past financial year will be put to a vote at the Annual General Meeting on May 7. This is flanked by a share buyback program of up to one billion euros, which began in January. Insider purchases by major shareholders and the finance chief have further underscored internal confidence.
Should investors sell immediately? Or is it worth buying Adidas?
Analysts largely share this tempered optimism. Current market data shows a majority of experts maintain a positive stance, with 22 out of 28 issuing buy recommendations. The average price target sits at 198.35 euros, implying significant potential upside from current levels. The planned total dividend payout amounts to 496 million euros.
On the operational front, competition remains fierce. U.S. rival Nike is currently attacking a prestigious piece of Adidas’s European marketing strategy: its sponsorship of the Champions League match ball, a contract worth around 40 million dollars. In counterplay, CEO Bjørn Gulden is emphasizing technological innovation, recently unveiling a new football boot platform dubbed “Project R.A.P.” to sharpen the brand’s profile in professional sports.
Technically, the share chart shows a strained picture. The stock continues to trade below its 50-day moving average of 145.16 euros and is down nearly 16 percent from its 200-day average. However, a recent daily gain of almost 1.5 percent and a climb from its 52-week low of 130.60 euros marked in early April signal tentative stabilization. The share recently crossed back above its 20-day line at 137.20 euros.
All eyes are now on the upcoming quarterly report. On April 29, 2026, Adidas will present its first-quarter figures. This report is seen as the first concrete test of whether the feared tariff and currency impacts will materialize in full force or if the underlying strength of the operational business can provide a faster cushion. The outcome will be crucial for determining the stock’s near-term trajectory.
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