Adidas has raised its full-year guidance for the second time in three months as its turnaround plan picks up pace.
The sporting giant said it delivered a better-than-expected performance, with operating profits almost doubling from £147m (€176m) to £290m) €346m in the quarter to May. This was boosted by a £41m (€50m) contribution from the sale of parts of the remaining Yeezy inventory.
Sales rose 9% to £4.8bn (€5.8bn), driven in part by the success of it Samba and Gazelle models.
Related Story
As a result, Adidas said is anticipating to deliver an operating profit for the year of £839m (€1bn), up from its previous guidance of around £587m (€700m) and double its expectations at the start of the year.
It comes as chief executive Bjørn Gulden has been leading a turnaround at the sporting giant after its break-up with rapper Ye, formerly known as Kanye West, left Adidas with unsold Yeezy shoes worth £1bn.
The retailer noted that its performance was aided by “reduced discounting, lower sourcing costs and a more favourable category mix”.
However, it warned that currency fluctuations will “weigh significantly” on profitability in 2024.
The news comes as rival Nike was forced to slash its 2025 profit forecast last month after the it reported weaker than expected sales in its fourth quarter.
Click here to sign up to Retail Gazette‘s free daily email newsletter
