Adidas will launch a share buyback of up to $1.17 billion, as CEO Bjorn Gulden cited strong cash flow and continued growth momentum for the brand.
“Our confidence in Adidas’ future top- and bottom-line growth and cash flow generation is also the reason why we have now decided to launch a share buyback,” Gulden said.
In the fourth quarter, revenue for the Adidas brand increased 11 per cent, including prior-year Yeezy sales of around $58 million, with revenue up 10 per cent.
Gross margin improved to 50.8 per cent from 49.8 per cent, while operating profit more than doubled to $193 million from $67 million.
The company said the buyback will begin in early February and be funded through anticipated cash flow. Adidas plans to cancel the repurchased shares.
“Driving double-digit growth in the fourth quarter despite all the external turbulence, and more than doubling our operating profit in the quarter made the year-end very well,” he said.
For the full year, revenue increased 13 per cent, marking the company’s second consecutive year of double-digit growth.
Including Yeezy sales in the prior year, revenue rose 10 per cent, with revenue reaching a record $29.2 billion, despite currency headwinds exceeding $1.71 billion.
Gross margin improved to 51.6 per cent from 50.8 per cent, while operating profit increased by more than $824 million to $2.42 billion. Operating margin rose to 8.3 per cent from 5.6 per cent.
Gulden said growth was supported by disciplined inventory management and strong full-price sales.
“The double-digit growth in all markets and all channels is, of course, very pleasing, but even more important is that this is quality growth,” he said.
“We have managed to keep full-price sell-throughs high and discounts under control. The gross margin of 51.6 per cent is historically high and underlines the strength of our brand.”
The company said it will provide full-year results, 2026 guidance, and further capital allocation plans this month.
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