HERZOGENAURACH - Sportswear giant adidas AG has reported a significant increase in its third-quarter revenue and profit, leading to an upward revision of its full-year financial outlook. The company saw a 10% rise in currency-neutral revenues compared to the same period last year, with actual revenues climbing to €6.438 billion, up from €5.999 billion in 2023.
Excluding sales from the Yeezy brand, adidas experienced an even more robust growth of 14% in currency-neutral terms. The company's gross margin improved by 2 percentage points, reaching 51.3%, bolstered by a stronger underlying gross margin. This improvement contributed to the operating profit for the quarter, which surged to €598 million from €409 million in the previous year. This figure includes approximately €50 million from the sale of parts of the remaining Yeezy inventory.
In response to these better-than-expected results and sustained brand momentum, adidas has revised its full-year guidance. The company now anticipates currency-neutral revenues to grow by around 10% for 2024, a notable increase from its previous forecast of a high-single-digit rate. Operating profit expectations have also been raised, with adidas now targeting around €1.2 billion, up from the earlier estimate of approximately €1.0 billion.
The updated guidance assumes that the remaining Yeezy inventory will be sold off at cost during the remainder of the year, which is projected to add around €50 million in sales without contributing further to the profit in the fourth quarter.
This positive financial update reflects adidas's resilience and adaptability in a competitive market. The company's strategic decisions and operational performance have evidently paid off, positioning it for a strong close to the year. The information in this article is based on a press release statement from adidas.
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