Adidas AG Revenue & Financials

Today, with $26.8 billion in revenue and 64,938 employees, adidas is the second-largest sportswear company in the world. The Yeezy partnership termination in 2022 had left the company holding approximately $1.3 billion in unsold Yeezy inventory and produced a revenue collapse that cut adidas's annual earnings to near zero. Revenue recovered from $21.4 billion in 2023 to $25.6 billion in 2024 to $26.8 billion in 2025, a remarkable restoration that reflected both the Yeezy inventory resolution and the underlying strength of adidas's non-Yeezy demand. Adidas's revenue trajectory from 2022 through 2025 tells the Yeezy story better than any summary: $22.5 billion in 2022, $21.4 billion in 2023 (the collapse year), $25.6 billion in 2024, $26.8 billion in 2025. The $1.337 billion net income for fiscal 2025 against a $33 billion market capitalization implies a price-to-earnings ratio of roughly 24 times — elevated for a consumer goods company but reflecting the market's confidence in Gulden's ability to sustain the recovery trajectory. The company's profitability improvement from near-zero in 2023 to $1.3 billion two years later represents one of the faster margin recoveries in consumer brand history. The Reebok acquisition in 2006 for $3.8 billion was a strategic misstep that adidas eventually corrected by selling the brand in 2021 for $2.5 billion — absorbing a significant loss but freeing management attention and capital that could be directed toward the core adidas brand. The $33 billion market cap values the company at roughly 1.2 times annual revenue — a modest multiple that reflects both the competitive intensity of the sportswear market and some residual skepticism about whether the 2024-2025 recovery can sustain at these growth rates without another Yeezy-scale tailwind.