adidas reports 19% rise in fourth-quarter revenue, full-year 2024 profits up By Investing.com

Investing.com — adidas released preliminary results for Q4 2024, which revealed a 19% increase in currency-neutral revenue. When converted into euros, the company’s revenues for the quarter grew by 24% to 5,965 million euros, from 4,812 million euros in 2023. Even when Yeezy sales are excluded, the neutral revenues of currency still saw an increase of 18%. The company’s gross margin also expanded, increasing 5.2 percentage points to 49.8%, from 44.6% in 2023. Operating profit for the quarter was 57 million euros, a significant improvement from operating loss of 377 million euros in 2023.

Looking to the full year 2024, adidas’ currency-neutral revenues increased by 12%. In euro terms, this translates into an 11% increase from the previous year, reaching 23,683 million euros, compared to 21,427 million euros in 2023. When Yeezy sales are excluded, revenues currency neutral shows a growth of 13%. The company’s gross margin for the year improved by 3.3 percentage points to 50.8%, up from 47.5% in 2023. Total operating profit for the year saw a boost of more than 1 billion euros, reaching 1,337 million euros, from 268 million euros in 2023. .

The CEO of adidas, Bjørn Gulden, expressed his satisfaction with the company’s performance in the fourth quarter and throughout 2024. He noted the strong momentum of the company and the growing interest in its products, in the segments Lifestyle and Performance. He also acknowledged the significant growth in all regions and divisions, attributing it to the efforts of their teams.

While Gulden stated that the company is not yet where it wants to be in the long term, he expressed happiness with the development, which exceeded his expectations. He also expressed optimism for the future, stating that adidas sees the potential to increase market share in all markets. Despite the current macroeconomic uncertainty, the company aims to continue double-digit growth with the adidas brand and further improve operating profit, aiming to move towards a 10% margin target.

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

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