Adidas reports a remarkable increase in operational profits in the first half of 2024, nearly tripling compared to the previous year, with significant contributions from European and Latin American markets.
- Operating profits for Adidas soared by 189% year-on-year to €682m (£575m) for the first six months of 2024.
- Boosting its confidence, Adidas raised its annual profit outlook, projecting an impressive €1bn (£840m) in operating profits.
- The football season, highlighted by major tournaments, provided a substantial boost to Adidas’ revenues, particularly in Europe and Latin America.
- However, the company also faced backlash over a controversial advertising campaign related to the SL72 running trainer.
Adidas reported a substantial 189% increase in operating profits, reaching €682m (£575m) in the first half of 2024 compared to the same period in 2023. This surge highlights the company’s robust financial performance and strategic market positioning.
In a move that reflects growing confidence, Adidas revised its operating profit guidance for the full year. The new projections suggest profits could reach €1bn (£840m), doubling the initial expectations set earlier in the year. Such optimism is supported by significant revenue inflows.
Key to this financial success was the double-digit sales growth across Europe and Latin America. Both regions benefited from Adidas’ sponsorship of prominent football tournaments, including the Euros and Copa Americas. The visibility and association with victorious teams like Spain and Argentina boosted the brand’s image and market reach.
Amidst this financial triumph, Adidas encountered public criticism related to its marketing choices. The controversy stemmed from a campaign for the SL72 running trainer, inspired by the 1972 Munich Olympics, a sensitive historical event marred by tragedy. The decision to initially cast, then withdraw, model Bella Hadid, who criticized the insensitivity of the campaign, intensified the backlash.
Despite this setback, Adidas is looking forward to future opportunities, such as the Paris Olympics, anticipating continued enthusiasm and consumer engagement. CEO Bjørn Gulden emphasized the company’s eagerness to capitalize on the heightened interest in sports events.
In essence, Adidas navigates a landscape of both lucrative opportunities and challenges, reflecting its dynamic presence in the sportswear industry.
