Adidas reported better-than-expected preliminary fourth-quarter results on Tuesday, capping a positive year with strong sales and profitability heading into the important holiday shopping period.
Last year, the German sportswear brand focused on fueling the trend of retro multi-colored three-striped shoes like the Samba and Gazelle in an effort to reboot the brand and boost sales, with a larger It has benefited from the poor performance of rival Nike.
The company announced that sales for the fourth quarter increased by 19% year-on-year on a currency-neutral basis, and gross profit margin increased by 5.2 percentage points to 49.8%.
Adidas reported sales of 5.956 billion euros ($6.2 billion), up from 4.812 billion euros in the same period last year.
For the full year, sales rose 12% on a currency-neutral basis to €23.683 billion ($24.7 billion).
Gross profit margin increased by 3.3 points to 50.8%, improving profitability.
The result is a 30% increase from an annual loss in 2023, when Adidas was hurt by severing ties with disgraced rapper and ex-Kanye West, leading to the abrupt end of its profitable Yeezy shoe line. This marks the first significant recovery in more than a year. .
Operating profit in 2024 increased to 1,337 million euros from 268 million euros in 2023.
