Adidas has revised its profit forecasts upward due to remarkable sales performance over recent months. This adjustment reflects a better-than-anticipated financial showing that surpassed Wall Street expectations.
- The company’s operating profit shot up significantly, reaching nearly £1bn for 2024, from an earlier projection of approximately €1bn.
- Adidas reported impressive gains in both lifestyle and performance segments, marking a 14% increase in the Adidas brand within the third quarter alone.
- A notable growth in Europe’s regional market by 18% and a strong e-commerce performance underscore the brand’s robust global presence.
- CEO Bjrn Gulden highlights the strategic direction and exceptional efforts of Adidas’ teams worldwide, emphasizing future growth initiatives.
Adidas has announced a substantial upward revision of its profit projections, driven by an unexpected surge in recent sales. Following a period of remarkable financial performance, the sportswear leader has adjusted its 2024 operating profit expectations to just shy of £1bn. This revision comes after the company’s operating profit soared to €598m in the third quarter, impressively up from €409m in the same period the previous year. Net income from ongoing operations saw a boost, reaching €449m, with notable growth in lifestyle and performance sectors propelling these numbers.
The third quarter witnessed a 14% uptick in the Adidas brand, underpinning the rise in currency-neutral sales by 10%. CEO Bjrn Gulden shared his positive outlook, stating, “The third quarter was a very strong quarter for us and again better than expected.” Gulden expressed contentment with a gross margin exceeding 51%, which, in his words, demonstrates the company’s successful trajectory.
The growth story extends beyond brand performance, with regional successes underscoring the company’s global strategy. A striking 18% increase in the European market and earlier-than-predicted positive shifts in North America highlight the Adidas brand’s adaptability and appeal across diverse markets. This broad-based success is attributed to the effective efforts of Adidas teams in various regions, which CEO Gulden applauded as key drivers of the brand’s upward momentum.
Adidas’ focus on footwear has paid dividends, with shoe sales experiencing a 14% surge, bolstered by strong demand in both its originals and performance categories, such as running and football. Moreover, the company’s strategic partnerships and popular collections have fueled impressive growth in apparel and accessories, contributing to a 13% rise in wholesale revenue and a 7% boost in direct-to-consumer sales.
Digital channels have also played a crucial role, with e-commerce revenues—excluding the Yeezy lineup—climbing by an impressive 25%. The brand’s proactive engagement and strategic initiatives have strengthened its market presence, confirming the effectiveness of its current business model.
Adidas’ latest financial updates underline its exceptional market adaptability and strategic prowess, laying a solid foundation for sustained growth.
