While some brands are navigating a “reset,” Adidas is celebrating a renaissance. The German sportswear giant is in the midst of a spectacular hot streak, and its Q3 2025 earnings report, released on October 30th, was a victory lap. The company announced its highest-ever quarterly revenue, a stunning EUR 6.63 billion, driven by a 12% currency-neutral growth that blew past all expectations.
This isn’t just a comeback; it’s a strategic masterpiece. Under the leadership of CEO Bjørn Gulden, Adidas has perfectly balanced its heritage with newness, turning its archive into a cash-printing machine. The engine of this growth is the “Terrace” and “Classics” category. Shoes like the Samba, Gazelle, and Spezial are no longer just footwear; they are a global style uniform. Adidas has masterfully managed this trend, creating perceived scarcity through collaborations while simultaneously feeding the mainstream market, resulting in a 14% year-to-date surge for the Adidas brand.
The Q3 report reveals a company firing on all cylinders. The gross margin is a healthy 51.8%, and growth is remarkably balanced across the globe: Europe, Greater China, and Latin America are all showing double-digit momentum. This isn’t just one product in one market; it’s a global phenomenon.
But the real genius of the current Adidas strategy is how it’s using the heat from its lifestyle division to fuel its performance categories. The “sports business” (performance gear) is up 17%. The halo effect is real: consumers drawn in by the trendy Sambas are rediscovering Adidas’s technical running, soccer, and training gear.
The earnings call provided a fascinating glimpse into the future. Adidas is keenly aware that the Terrace trend won’t last forever. The company is already seeding its next big thing: “Lifestyle Running.” It is strategically re-introducing and innovating in this category, with models like the EVO SL, anticipating a shift in consumer taste from flat-soled court shoes to the chunky, techy runners of the early 2000s. It’s a classic case of “managing the transition”—using the profits from today’s winner to build tomorrow’s.
Its success in China is another key pillar. With 12% growth, Adidas has cracked the code by heavily localizing its creation and manufacturing. With a design center in Shanghai, 50-60% of its apparel for the Chinese market is now designed in China. This allows it to compete directly with fast-moving local brands and connect with consumers in third- and fourth-tier cities, a strategy its Western competitors have struggled to match.
Adidas in late 2025 is a case study in brand management. It has weaponized its archive, turned a footwear trend into a global revenue driver, and is already laying the groundwork for its next chapter, all while executing with precision across the globe.
