Adidas has once again elevated its financial outlook for the year following a remarkable third-quarter performance.
- The brand recorded a significant 46% surge in operating profit, largely attributed to the soaring success of its Samba and Gazelle footwear lines.
- Total sales experienced a notable 7% increase, underpinned by these popular product ranges.
- Adidas projects its year-end operating profit to reach £1 billion, a substantial growth from prior guidance.
- The strategic shift comes as the company navigates past challenges, notably the dissolution of its partnership with Ye.
Adidas has made a strategic decision to raise its profit forecast for the year to £1 billion, reflecting a robust third-quarter performance that surpassed expectations. This marks the third adjustment in financial projections this year alone, underscoring the brand’s recent momentum.
Operating profit saw an impressive increase of 46%, surging from £342 million to £500 million. This growth is significantly driven by the overwhelming market success of Adidas’ Samba and Gazelle trainers, which remain pivotal to the company’s sales achievements.
Overall sales for Adidas rose by 7%, climbing to £5.39 billion, signifying the impact of its product strategy focused on key footwear lines. The brand attributes this upward trend to the positive reception and sustained demand for its classic models.
Adidas anticipates its full-year operating profit to escalate to £1 billion, a notable increase from previous expectations of £837 million. Additionally, currency-neutral sales are expected to rise approximately 10% instead of the earlier forecasted high-single-digit growth.
This strategic evolution is navigated by CEO Bjørn Gulden as Adidas continues to recover from the challenges brought by its split with rapper Ye. This separation left Adidas with unsold Yeezy inventory valued at £1 billion. However, the sale of remaining Yeezy stock contributed £41.8 million during this quarter, yet no further profit is anticipated from these sales in the fourth quarter.
Adidas’ revised forecast and strategic shifts signal a positive trajectory as it capitalizes on product popularity and navigates past challenges.
