Adidas raises forecast amid retro revival
Adidas has raised its full-year sales and profit guidance for the third time in 2024, driven by a strong third-quarter performance and increasing demand for its retro-styled Samba and Gazelle shoes.
The company reported a 10% increase in currency-neutral revenues and a 7% rise in euro-denominated sales to €6.44 billion, compared to €6.00 billion in Q3 2023. Excluding Yeezy sales, currency-neutral revenues surged 14%.
Adidas' gross margin improved to 51.3% in Q3, up from 49.3% a year earlier. Operating profit also rose significantly to €598 million, up from €409 million in Q3 2023, bolstered by €50 million from Yeezy inventory sales.
As a result of its strong brand momentum, Adidas now expects 2024 revenues to grow by around 10%, with operating profit projected to reach €1.2 billion—20% higher than its previous forecast. CEO Bjorn Gulden’s strategy, focusing on Adidas’ sports roots and retro product lines, has helped the company regain market share from rival Nike.
