Investing.com — Adidas reported a strong close to 2024, with preliminary fourth-quarter results showing a 19% increase in currency-neutral revenue, exceeding expectations.
In euro terms, revenue surged 24% to €5.965 billion, compared to €4.812 billion in the same period in 2023.
Excluding Yeezy sales, revenue still showed an 18% increase. The company also saw an improvement in its gross margin, which rose by 5.2 percentage points to 49.8%, and reported an operating profit of €57 million, a turnaround from the €377 million loss in Q4 2023.
Based on preliminary unaudited numbers, Addidas said that for the full year, it achieved a 12% rise in currency-neutral revenue, with total revenues reaching €23.683 billion, up 11% in euro terms from €21.427 billion in 2023.
Excluding Yeezy sales, currency-neutral revenues were up 13%. The company’s gross margin improved by 3.3 percentage points to 50.8%, and operating profit soared by over €1 billion, reaching €1.337 billion from €268 million in 2023.
Adidas (OTC:) CEO Bjørn Gulden expressed satisfaction with the results, stating, “19% currency-neutral growth (+24% reported) in a quarter that in general was difficult for the trade underlines the strong momentum we currently see for our brand and our products.”
He highlighted the robust interest from consumers and retailers across all regions and divisions.
Looking ahead, Gulden noted that while there is macroeconomic uncertainty, Adidas aims to continue growing at a double-digit rate and further improve operating profit, targeting a 10% margin.
The company will release its full financial results for 2024 and provide 2025 guidance on March 5, 2025.
