Adidas records strong Q3 led by 14 percent growth in footwear

Adidas reported currency-neutral revenue growth of 10 percent during the third quarter. In euro terms, revenues grew 7 percent to 6.438 billion euros.

For the year ahead, Adidas expects currency-neutral revenues to increase at a rate of around 10 percent, and operating profit to reach a level of around 1.2 billion euros.

“The third quarter was a very strong quarter for us and again better than expected. 14 percent underlying growth for the Adidas brand, a very healthy gross margin above 51 percent and an operating profit of 598 million euros are numbers that we are very happy with and proof that we are moving in the right direction,” said Adidas CEO Bjørn Gulden commenting on the trading results.

Adidas says Q3 driven by footwear-led growth across product categories

The company attributed the double-digit growth to strong momentum of the underlying Adidas business, which grew 14 percent. The sale of parts of the remaining Yeezy inventory generated revenues of around 200 million euros in the quarter, significantly below the Yeezy sales in the prior year.

The company’s footwear revenues increased 14 percent on a currency-neutral basis during the quarter, led by double-digit growth in Originals.

In addition, double-digit growth in sportswear as well as increases in performance categories, including football, running, training, golf and specialist sports, contributed to the broad-based growth in footwear.

Adidas said in a release that apparel sales were up 5 percent, mainly driven by double-digit growth in football and accessories returned to growth and increased 10 percent during the quarter.

On a currency-neutral basis, lifestyle revenues increased double digits during the quarter, while performance also posted double-digit growth, with increases in almost all performance categories.

Adidas reports growth across geographies

Adidas wholesale grew 13 percent on a currency-neutral basis during the third quarter, while direct-to-consumer (DTC) revenues grew 7 percent versus the prior year. Excluding Yeezy, the company’s DTC business grew 17 percent.

The company added that e-commerce revenues declined 3 percent in the quarter because of the significantly smaller Yeezy business. Excluding Yeezy, revenues in e-commerce increased more than 25 percent.

Addias currency-neutral sales in Europe increased 18 percent during the quarter, revenues in emerging markets and Latin America were up 16 percent and 28 percent, respectively, while sales in Japan/South Korea increased 18 percent. Revenues in Greater China grew 9 percent, while in North America, sales decreased 7 percent due to the significantly smaller Yeezy business. Excluding Yeezy, revenues in North America increased versus the prior year.

The company’s gross margin increased 2.0 percentage points to 51.3 percent during the quarter and operating profit increased to 598 million euros , reflecting an operating margin of 9.3 percent. The sale of parts of the remaining Yeezy inventory contributed around 50 million euros to the operating profit in the third quarter.

The company’s net income amounted to 469 million euros, with basic and diluted EPS increasing to 2.44 euros.

Adidas posts 10 percent increase in first nine months results

Currency-neutral revenues were up 10 percent in the first nine months of 2024. In euro terms, revenues were up 7 percent to 17.718 billion euros.

The company further said that the top-line development was driven by 11 percent currency-neutral increase in the underlying Adidas business. In addition, the sale of parts of the remaining Yeezy inventory contributed revenues of more than 550 million euros.

The company’s gross margin increased 2.7 percentage points to 51.1 percent, operating profit rose to 1.280 billion euros, reflecting an operating margin of 7.2 percent. Net income increased to 851 million euros with basic earnings per share increasing to 4.50 euros.