Adidas ups marketing investment 10% as revenues surge

On a mission to rebuild brand strength and “momentum” under CEO Bjørn Gulden, Adidas ramped up its marketing spend by 10% year-on-year in the third quarter. 

The German sportswear giant increased marketing and point-of-sale expenses to €798m (£703m) in the quarter, as “brand investments remained a priority” despite macroeconomic headwinds.  

Alongside continuing to activate around its brand platform ‘You Got This’, Adidas invested in campaigns for its Superstar and Evo SL footwear lines, as well as recent sports partnerships with Liverpool FC and Audi’s upcoming Formula 1 team.  

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As a percentage of sales, marketing and point-of-sale expenses rose 0.8 percentage points to 12%, signalling the step-up in brand spend since Gulden’s return in 2023.  

The rise in marketing spend reflects the brand-led recovery Adidas has been pursuing since 2023. In March, Gulden outlined plans to increase marketing investment to help leverage “strong top-line growth” and drive “brand heat” globally. 

Breaking records

Adidas hit record net sales income of €6.6bn (£5.8bn) in the quarter, with its gross margin improving 0.5 percentage points to 51.8%, despite the “unfavourable effects” from currencies and tariffs. Operating profit grew 23% to €736m (£648m) in the quarter.  

Strong financial results mean the business has increased its outlook for 2025, with company revenues expected to increase by around 9% and operating profit to hit €2bn – an uplift on its previous guidance of €1.7bn to €1.8bn (£1.5bn to £1.58bn). 

“2025 is a success for us already,” said Gulden.

The CEO noted 14% growth for the Adidas brand so far this year and an EBIT margin of above 10% as “proof” of the company’s brand strength.

“Being a global brand with a local mindset, empowering our markets to win their local consumers is the right strategy to be globally successful and is driving these strong results,” he added.  

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Both the performance and lifestyle divisions reported strong growth in the quarter.  

Performance revenues increased 17%, led by strong growth in running and football products, he former increasing 30%. Adidas returned as kit partner for Liverpool FC from the 2025/26 football season after the club’s five-year deal with Nike ended. The brand described the Liverpool tie-up as “particularly successful” out of a long list of sports partnerships.  

Growth was slower, but still positive, in its lifestyle division, which grew 10% in the quarter driven by growth in Originals. Collaborations with Oasis and designer Wales Bonner were highlighted as key growth drivers. 

Adidas is also putting energy behind its Superstar line, as it began to “sequentially scale”, as well as its ‘Low Profile’ trainer range, which continues to iterate and contribute to growth.  

“The focus is now on transitioning well into 2026, which will be another exciting sports year with the Winter Olympics right at the beginning, the biggest Football World Cup ever, and many more great events to look forward to,” said Gulden.