By Andrea Figueras

Adidas said it achieved better-than-expected results on a preliminary basis for the first quarter, boosted by strong brand momentum, at a challenging time for sporting-goods companies as U.S. tariffs take center stage.

The German sportswear company on Wednesday reported preliminary revenue of 6.15 billion euros ($7.02 billion) for the first three months of this year, 13% higher than in the prior-year period in currency-neutral terms. The result compares with analysts' forecasts of 6.13 billion euros, according to a Visible Alpha poll of estimates.

Excluding Yeezy sales in the prior year, currency-neutral revenue for the Adidas brand rose 17% during the quarter, driven by double-digit growth across all markets and channels.

The update comes as sporting-goods brands brace for turbulence after President Trump unveiled tariffs on imported goods from major sourcing hubs for footwear and apparel. These included Vietnam, the country to which the industry pivoted to escape higher wage costs and tariff threats in China. Other Asian countries such as Cambodia, Thailand, Indonesia and Laos--where the industry has key manufacturing partners--were also subject to the levies. The duties were later suspended for 90 days, though tariffs on some products remain in place.

Analysts had expected significant price increases from retail businesses to mitigate higher costs related to Trump's tariffs, at a time marked by weakening consumer sentiment.

While the duties will be a cause for concern for many brands, some companies appear to be facing greater difficulties. U.S. sportswear maker Nike is in the midst of a restructuring plan, led by Chief Executive Elliott Hill. Meanwhile, German rival Puma said earlier this month that it parted ways with CEO Arne Freundt due to differing views with the company's supervisory board on strategy execution, and appointed former Adidas executive Arthur Hoeld as his successor.

Adidas reported operating profit of 610 million euros for the quarter, up from 336 million euros previously, with a margin of 9.9%. Having completed the sale of the remaining inventory of Yeezy-branded sneakers from a collaboration with rapper Ye, formerly known as Kanye West, at the end of last year, the company's results for the first quarter of 2025 don't include any contribution from these products, it said.

The company will publish full results for the first quarter on Tuesday.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

April 23, 2025 14:36 ET (18:36 GMT)

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