Adidas, the world’s second-largest sportswear company, has raised its full-year profit forecast following a strong third-quarter performance that exceeded expectations. The German firm reported a 37 percent increase in operating profit for the quarter, reaching a record €1 billion, while revenues climbed 9 percent to nearly €7.3 billion.

The company increased its full-year operating profit projection by approximately €100 million, building on an earlier upgrade announced at the half-year mark. Adidas anticipates revenue growth between 9 and 10 percent for the entire year. The news prompted a 1.7 percent rise in the company’s shares following an unscheduled preliminary earnings announcement on Tuesday.

Chief Executive Bjorn Gulden described the quarter as “great,” highlighting that investments in marketing and brand creativity contributed to increased global appeal. During the quarter, Adidas also received a significant financial benefit after the US Supreme Court invalidated most of its tariff claims related to trade taxes, resulting in a €200 million refund. This one-time payment factored into the updated profit outlook.

Excluding the tariff refund, Adidas’s third-quarter operating profit still exceeded analysts’ estimates by 9 percent, according to JP Morgan. Felix Dennl, an analyst at Metzler, noted that while the revised forecast largely reflects the one-off tariff reimbursement, the company also experienced improved full-price sales.

Adidas’s shares have been recovering since a sharp decline in July, which followed a 30 percent increase in marketing and point-of-sale expenses during the first half of the year. After reporting lower-than-expected half-year earnings and absorbing a $1 billion marketing expenditure, the share price had dropped 17 percent.

Gulden defended the heightened marketing spend, including efforts tied to the men’s football World Cup, emphasising the long-term value of such investments. “If we spend 2, 3, 4, 500 million... it is not for the event; it’s for the future of the brand,” he said at a Fast Company conference.

The company has also sought to refresh its product lineup amid dwindling demand for its classic Samba and Gazelle sneakers. Innovations include the launch of the Adizero Adios Pro Evo 3, Adidas’s lightest-ever racing shoe, which supported Kenyan athlete Sabastian Save in breaking the two-hour barrier at the London Marathon in April.