Adidas Just Hired a New CFO After Record Sales - and an 18% Warning Shot

Record sales exposed Adidas's profit problem

Adidas just proved it can drive demand. The harder question is whether it can turn that demand into proportionate profit.

Record revenue still led to a sharp profit miss

Adidas posted record second-quarter net sales of €6.7 billion, reflecting strong World Cup-related demand. But operating profit rose just 5% to €574 million and missed analyst expectations of €623 million. The stock then fell more than 18% in a single session, showing that investors cared much more about profit conversion than the sales record itself.

The leadership change lands at a key turning point

That is why Ohlmeyer stepping down at the end of the year matters more than a routine executive shuffle. The next CFO will inherit strong revenue momentum, but also the pressure to show that this quarter's profit squeeze was tied to a special promotional environment rather than a more fragile business model.

Why the market sold off on what looked like good news

Strong demand came with tighter profitability

Adidas entered the quarter with World Cup momentum and delivered currency-neutral revenues up 14%, DTC growth of 25%, Performance business growth of 39%, and a gross margin improvement of 0.8 percentage points to 52.5%.

Even so, operating profit still came in below expectations. The market's reaction suggests the issue was not demand, but whether that demand was being converted into profit quickly enough.

World Cup marketing spend sits at the center of the debate

Management said marketing rose by €212 million, tied to World Cup campaigns and activations. That helps explain the quarter, and it shapes the next few quarters.

The bullish view is that this was a concentrated investment with lasting payoff. Adidas raised its full-year revenue outlook to 9% to 10% constant-currency growth while keeping its operating profit target at around €2.3 billion, suggesting management believes the spend was strategic rather than wasteful.

The bearish view is more cautious: if Adidas has to spend €212 million more on marketing and still delivers only 5% operating profit growth, then event-led demand may be expensive to sustain.

What matters in the coming quarters

The next few quarters should clarify whether World Cup spending was fuel or fertilizer. The clearest signals are:

• Whether gross margin continues to improve as marketing normalizes
• Whether Performance strength broadens beyond the tournament window
• Whether Adidas can still reach around €2.3 billion in operating profit if the event tailwind fades

If those signals improve, the sell-off may look like a reset. If not, investors may keep treating sales records as less valuable.

Why the new CFO is the main story now

Adidas does not need another revenue storyteller. It needs a finance leader who can show that recent sales momentum can translate into cleaner profit once higher marketing investments fade. That is why Ohlmeyer stepping down at the end of the year is the next real decision point in this story.

Ohlmeyer is leaving from a position of experience, not embarrassment. He has served as CFO since May 2017, spent almost three decades with Adidas, and took on additional responsibility for supply chain and tech in August 2024. Gulden described him as a huge contributor to the company's success. The question now is whether his successor can protect the gap between revenue growth and profit growth.

Birgit Kretschmer's appointment shifts attention to execution

Adidas is turning to Birgit Kretschmer, who returns after previously spending 25 years with Adidas and most recently serving as CFO of C&A. The appointment signals that management wants finance leadership with both brand familiarity and cost-management experience.

The market will likely focus on transition risk first. If the new CFO needs more than a couple of quarters to tighten operating discipline, investors may keep discounting the value of every new sales record.