German sportswear manufacturer Adidas has raised its full-year profit outlook following the announcement of a record-breaking third quarter. According to Asharq Al-Awsat, the company’s operating profit for the third quarter increased by 37 percent, reaching €1.008 billion, or approximately $1.1 billion, compared to €736 million in the same period last year. This significant financial improvement has led the firm to adjust its annual earnings expectations upward.
The primary drivers of this performance included a refund of tariffs in the United States and strong sales at full price points. Asharq Al-Awsat noted that Adidas has benefited from consumer demand for its retro apparel and a boost from the soccer World Cup. As the company competes with rivals such as Nike, it is currently working to roll out new styles to maintain its market position. The combination of these factors contributed to the record operating profit figure reported for the quarter.
While the headline news focuses on Adidas’s financial success, the broader context provided in the report highlights shifting consumer behaviors in other markets. The publication described a situation where global fashion icons are feeling pressure as consumers in China turn toward second-hand markets or domestic upstart brands. This shift is occurring even as Chinese consumers were once major buyers of luxury Western brands, accounting for a significant portion of worldwide spending.
The report detailed that mainland China’s personal luxury market contracted between three and five percent in 2025, following a decline of up to 19 percent in 2024. In contrast, the second-hand luxury market in China exploded, growing by 15 to 20 percent in 2025. Domestic consultancy Insight & Info Consulting estimated that total sales in this segment reached 38.4 billion yuan in 2025, with forecasts suggesting it could exceed 100 billion yuan by 2030. These trends indicate a complex landscape for international sportswear and luxury brands operating in the region.