April 29 (Reuters) – Germany’s Adidas on Wednesday reported better-than-expected operating profit in the first quarter, helped by strong demand despite what CEO Bjorn Gulden described as a “very volatile and heavily discounted” retail environment, especially in sneakers.
Group net sales rose 14% currency-neutral to 6.6 billion euros ($7.7 billion) in the quarter, even with several countries in the Middle East posting sales declines due to the conflict in the region, the sportswear maker said.
Adidas said it was exercising discipline to not sell too many products to retailers and thus avoid sneakers having to be discounted.
U.S. rival Nike said earlier this month it was being “aggressive” with markdowns as it tries to clear unsold stock.
Adidas’ operating profit in the first three months of 2026 rose by 16% to 705 million euros, above the 647 million euros projected by analysts in a company-compiled poll, up from 610 million euros a year earlier.
Sales were helped by increased demand in football gear on the back of the FIFA World Cup 2026 starting in June, Adidas said.
($1 = 0.8546 euros)
(Reporting by Linda Pasquini in Gdansk and by Helen Reid in London, editing by Ludwig Burger and Thomas Seythal)
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