Adidas Profit Disappoints as World Cup Marketing Splurge Backfires

Adidas AG shares fell the most on record after the German brand’s marketing splurge for the football World Cup resulted in lower-than-expected quarterly profit.

Chief Executive Officer Bjorn Gulden bet big on the football tournament, releasing jerseys and related merchandise months before rivals Nike and Puma and putting out a flashy brand campaign featuring actor Timothée Chalamet, Argentina captain Lionel Messi and singer Bad Bunny.

Despite the aggressive marketing push, the higher costs ate into profits, disappointing investors and causing a historic drop in the stock price. The company's strategy to dominate the World Cup conversation came at a steep price, highlighting the risks of overspending on major events.