Sports brand Adidas has announced preliminary results for the third quarter (Q3) of 2024. In Q3, currency-neutral revenues increased 10 per cent year-over-year (YoY). In euro terms, the company’s revenue grew 7 per cent to €6.438 billion (~$7.01 billion), versus €5.999 billion (~$6.53 billion) in 2023. Excluding Yeezy sales in both years, currency-neutral revenues increased 14 per cent during the third quarter.
The company’s gross margin increased 2.0 percentage points to 51.3 per cent in Q3 in comparison to 49.3 per cent in 2023. The YoY increase of the underlying adidas gross margin was even stronger. Its third quarter operating profit increased to €598 million (~$651 million) versus €409 million (~$445 million) in 2023, including a contribution of around €50 million (~$54 million) from the sale of parts of the remaining Yeezy inventory, Adidas said in a press release.
Adidas has increased its full-year guidance to reflect the better-than-expected performance during the quarter and the current brand momentum. The company now expects currency-neutral revenues to increase at a rate of around 10 per cent in 2024 (previously: increase at a high-single-digit rate). The company’s operating profit is now expected to reach a level of around €1.2 billion (~$1.3 billion) as previously it was estimated at around €1 billion (~$1.09 billion).
Within its guidance, the company assumes the sale of the remaining Yeezy inventory during the remainder of the year to occur on average at cost. This would result in additional sales of around €50 million and no further profit contribution in the fourth quarter.
