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Adidas ends 2024 on a high with double-digit sales growth

Adidas ends 2024 on a high with double-digit sales growth

Adidas has delivered “better-than-expected” results for the fourth quarter of 2024, capping off a successful year for the German sportswear giant.

The sporting retailer saw revenues grow 24% during the period to €5.97bn (£5.17bn), up from €4.81bn  £4.17bn) in the same quarter last year. Excluding Yeezy sales in both years, revenues increased 18%.

The company’s gross margin improved by 5.2 percentage points, reaching 49.8%, while operating profit rebounded to €57m (£49.4m), compared to an operating loss of €377m (£326.8m) in Q4 2023.

Adidas CEO Bjørn Gulden attributed the strong performance to growing consumer and retailer interest across the brand’s lifestyle and performance categories, as well as consistent growth across regions and divisions.

“I am very pleased with the way the fourth quarter and the full year developed for us at Adidas,” Gulden said. “Although we are not yet where we want to be long term, I am very happy with this development, which was much better than we had expected.”

For the full year, Adidas reported a 12% increase in revenues, with total sales rising to €23.68bn (£20.49bn), compared to €21.43bn (£18.53bn) in 2023.

Excluding Yeezy sales, revenues grew by 13%. The gross margin for 2024 improved by 3.3 percentage points to 50.8%, while operating profit jumped by more than €1bn to €1.34bn (£1.16bn), up from €268m (£232m) the previous year.

Looking ahead, Gulden said “There is a lot of macroeconomic uncertainty right now, but we clearly have the goal to again grow double-digit with the Adidas brand and use that growth to continue to improve our operating profit and make further progress towards our 10 percent margin target.”

The results represent a strong rebound for the company after plunging to its first annual loss in over 30 years in 2023, which was largely due to severing ties with rapper Ye (formerly Kanye West) and the abrupt end of its highly profitable Yeezy shoe line.

Adidas is set to publish its final 2024 financial results and 2025 guidance on 5 March 2025.

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