adidas AG (OTCQX:ADDYY) reported a near doubling of profits over the second quarter after sales of its core branded goods jumped.
Operating profit increased 97% to €346 million (£307 million) during the period, aided by an 11% increase in currency-neutral sales, Adidas reported on Wednesday.
Sales within the firm’s underlying Adidas business climbed 16%, while footwear revenues jumped 17%.
“Both the consumers and our retail partners continue to show a strong and increased interest in our brand and our products,” chief executive Bjørn Gulden commented.
“The improved brand momentum with our consumers happened faster than we had expected.”
Noting a profit upgrade earlier this month by Adidas, Deutsche Bank analysts highlighted improved margins, lower freight costs and a strong mix of products.
At €236.60 as of Tuesday’s close, the bank added Adidas shares were trading on a 21.5x price-to-earnings ratio for 2026.
“The shares are not cheap but we see scope for this to head towards 25x,” analysts said.
Deutsche reiterated a ‘buy’ rating for Adidas, alongside a €265 share price target.