Adidas sees Europe rebound in fourth quarter, streaks ahead in China

By Alessandro Parodi

Oct 29 (Reuters) - German sportswear maker Adidas said on Thursday it expected Europe, its largest but worst-performing market, to return to growth in the last quarter of 2026, while it continued a strong run in China where it is outpacing rival Nike.

Heavy discounting at many retailers due to high inventory levels and promotional activities led to a slowdown in Europe, with sales contracting in the third quarter. The region accounts for almost a third of group sales.

Adidas CEO Bjorn Gulden told journalists the group had a strong order book despite the difficult situation of some European economies. The firm said the fourth quarter would be helped by delayed shipments moving into the period, and higher sales to wholesalers.

"We're still taking share and are doing pretty well," Gulden said.

The company's Frankfurt-listed shares were up 4% by 1100 GMT on Thursday, with JPMorgan analysts pointing to the reassuring comments on an improving business in Europe.

ADIDAS GAINS GROUND ON NIKE

Adidas said it expected high single-digit growth in Europe in the last three months of 2026, after currency-neutral net sales fell by 4% to €2.24 billion ($2.50 billion) in the third quarter.

By contrast, its quarterly sales grew by 12% in North America and 13% in Greater China, where it outperformed US rival Nike, whose sales have been falling there for almost two years.

"We see that other companies are struggling (in China), but I don't see anything right now that tells us that we see any clouds in the next quarters," Gulden said.

In its competition with Nike, Adidas has been investing in new styles, including the launch of its lightest-ever racing shoe, the Adizero Adios Pro Evo 3, which helped Kenyan runner Sabastian Sawe to crack the two-hour marathon barrier in April.

The group confirmed its previously released results for the third quarter and its raised guidance for the year, citing strong sales of its running and football lines.

Marketing and point-of-sale expenses were up 4% to €833 million, reflecting additional brand investments around the World Cup throughout July as well as normalizing marketing spend since August.

($1 = 0.8959 euros)

(Reporting by Linda Pasquini and Alessandro Parodi, Editing by Friederike Heine, Tomasz Janowski and Jan Harvey)