Adidas raises outlook on strong Q3

Adidas announced that the preliminary third quarter currency-neutral revenues increased 10 percent and in euro terms, revenues grew 7 percent to 6.438 billion euros.

The company has increased its full-year guidance to reflect the better-than-expected performance during the quarter and the current brand momentum. Adidas now expects currency-neutral revenues to increase at a rate of around 10 percent in 2024 and operating profit is now expected to reach around 1.2 billion euros.

Excluding Yeezy sales in both years, the company’s currency-neutral revenues increased 14 percent during the quarter.

Gross margin for the quarter increased 2 percentage points to 51.3 percent, while operating profit increased to 598 million euros, including a contribution of around 50 million euros from the sale of parts of the remaining Yeezy inventory.

Within the above guidance, the company assumes the sale of the remaining Yeezy inventory would result in additional sales of around 50 million euros and no further profit contribution in the fourth quarter.