The news: Adidas’ World Cup marketing blitz drove record sales in Q2 as fans snapped up jerseys, soccer balls, and other tournament merchandise.

But the revenue expansion came at a cost. Marketing expenses rose 30% YoY to €924 million ($1.04 billion), contributing to Q2 profits and a full-year profit outlook that fell below analyst expectations and sent adidas’ shares lower.

The big picture: The market’s focus on profits overshadowed an otherwise robust quarter for adidas, which managed to outshine Nike in a tournament occurring on its rival’s home turf. Healthy apparel and accessories sales—up 35% and 20% YoY, respectively—reflected the brand’s growing traction in the lifestyle space, which is central to its growth strategy.

As executives pointed out on the call, adidas’ World Cup marketing was designed not only to drive sales during the event but also to increase brand desirability in the long term. The decision to showcase celebrities like Timothée Chalamet and Bad Bunny alongside soccer stars like Lionel Messi was a deliberate strategy aimed at enhancing adidas’ lifestyle appeal, particularly in markets like the US, where its share trails Nike. The company also noted that it expects its World Cup bounce to persist beyond Q2, especially in markets like Spain, where consumers continue to scoop up merchandise tied to the tournament winners.

Implications for retail: Adidas’ World Cup campaign may have been costly, but its benefits from a brand-building perspective could prove invaluable as the company looks to grow its US influence and become a more meaningful global challenger to Nike. At the same time, its record Q2 performance underscores the fact that sports events like the World Cup remain the best way to reach audiences at scale.