Adidas Targets China for Explosive Growth—Will Localized Strategy Deliver Big Wins? 

Adidas AG, a global leader in the sporting goods industry, has reported strong financial performance for the second quarter of 2025. The company recorded a robust 12% growth in its Adidas brand sales, adjusted for currency fluctuations, bolstered by strategic brand initiatives and market expansion. The company’s top-line growth was accompanied by a significant improvement in its gross margin, which increased by 90 basis points to 51.7%. Excluding the impact of the Yeezy brand, which was discontinued last year, the underlying gross margin improvement was an even higher 120 basis points. This margin enhancement was driven by efficiencies in sourcing and supply chain management, fewer discounts, and favorable freight costs, although partially offset by adverse currency effects from countries experiencing inflationary pressures.