Updated Version 1-Update 1-Adidas sees a rebound in its European business in the fourth quarter, with strong performance in the Chinese market

In paragraphs 3-4 and 7, CEO's remarks were added, along with charts and updated share price movement.

Alessandro Parodi

Reuters, October 29 - German sports apparel manufacturer Adidas (ADSGn.DE) said on Thursday that it expects its largest but weakest market, Europe, to return to growth in the fourth quarter of 2026, while strong momentum in the China market continues, outperforming competitor Nike.

Many retailers offered deep discounts due to high inventory levels and promotional activity, slowing the pace of growth in Europe and causing sales to contract in the third quarter. The region accounts for nearly one-third of group sales.

Adidas CEO Bjorn Gulden told reporters that despite difficulties faced by some European economies, the group’s order situation remains strong. The company said the fourth quarter’s results will benefit from delayed shipments shifting into the quarter and growth in wholesale sales.

“We are still gaining market share and performing quite well,” Gulden said.

At GMT 11:00 on Thursday, the company's Frankfurt-listed share price rose by 4%. JPMorgan analysts noted that the comments regarding improvement in Europe business are reassuring.

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Adidas advances steadily in competition with Nike

Adidas stated it expects high single-digit growth in European sales in the last three months of 2026, after third-quarter net sales excluding currency effects declined 4% to €2.24 billion ($2.5 billion).

In contrast, its North America quarterly sales increased by 12% and Greater China was up by 13%, outperforming US competitor Nike NKE.N in the region, while Nike’s sales (link) have fallen continuously for nearly two years.

“We see other companies facing challenges in China, but I haven’t seen any signs so far suggesting we’ll run into any headwinds in coming quarters,” Gulden said.

In its rivalry with Nike, Adidas has continued to develop new styles, including its lightest-ever racing shoe, Adizero Adios Pro Evo 3, which helped Kenyan athlete Sabastian Sawe (link) break the two-hour marathon barrier in April.

The group confirmed previously announced third-quarter results (link) and raised its full-year outlook, citing strong sales performance in its running and football lines.

Marketing and point-of-sale expenses increased by 4% to €833 million, reflecting additional brand investment around the World Cup in July and normalization of marketing spending since August.

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