Adidas posts 19% rise in Q4 earnings, 2024 full-year profit on high growth By Investing.com

Investing.com — Adidas released preliminary results for Q4 2024, showing a 19% rise in currency-neutral revenue. Converted to euros, the company’s quarterly revenue rose 24 percent to 5,965 million euros, up from 4,812 million euros in 2023. Even when Yezi sales are excluded, currency-neutral revenues were still up 18 percent. The company’s gross margin increased, 5.2 percentage points to 49.8%, compared to 44.6% in 2023. Profit for the quarter was 57 million euros, a significant improvement from the operating loss of 377 million euros in 2023.

Looking at the full year 2024, Adidas’ currency-neutral revenue increased 12 percent. In euro terms, this translates into an 11% increase over last year, reaching 23,683 million euros, compared to 21,427 million euros in 2023. Excluding Yeezy sales, currency-neutral revenues showed a 13 percent increase. The company’s gross margin increased by 3.3 percentage points to 50.8% in 2023 from 47.5%. Full-year operating profit increased by more than €1 billion, reaching €1,337 million, up from €268 million in 2023.

Adidas CEO Bjørn Gulden expressed satisfaction with the company’s performance in the fourth quarter and 2024, citing the company’s strong momentum and growing demand for its products in the lifestyle and performance segments. He admitted that the significant progress being seen in all regions and departments is due to the efforts of his team.

While Gulden said the company is not where it wants to be in the long term, he said he is happy with the development, which has exceeded their expectations. He also expressed his hope for the future, stating that Adidas has the potential to increase market share in all markets. Despite the current macroeconomic uncertainty, the company aims to continue the double-digit growth of the adidas brand and further improve operating profit, with a goal of growing to a 10% margin target.

adidas plans to publish its final financial results for 2024 and provide financial guidance for 2025 on March 5, 2025.

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