Adidas reports strong Q4 sales, points to further growth in 2025
Sporting goods giant Adidas reported a strong end to 2024 with underlying revenues rising by nearly a fifth, with the company pointing to further growth in sales in 2025 with hopes to increase market share across all markets.
Currency-neutral revenues for 2024 as a whole were up 12% at €23.68bn, better than the 10% growth guidance given in October.
Fourth-quarter revenues rose at a currency-neutral rate of 19% to €5.97bn, with the company reporting strong growth across all markets, channels and product divisions.
"Going from single-digit growth at the beginning of the year to 19% currency-neutral growth in a fourth quarter, that in general was difficult for the trade, underlines the strong momentum we currently see for our brand and our products," said chief executive Bjørn Gulden.
Gross margins in the fourth quarter rose 5.2 percentage points year-on-year to 49.8% due to lower product and freight costs, a more favourable business mix and the impact of reduced discounting. This helped Adidas make an operating profit of €57m for the quarter, compared with a prior-year loss of €377m.
As a result, the full-year operating profit totalled €1.34bn for 2024, up from just €268m in 2023.
For 2025, the company pointed to further growth in operating profits to the €1.7bn-1.8bn level, as revenues rise at a high-single-digit rate on a currency-neutral basis.
"I think for 2025 we are in very good shape. I am confident we have the product pipeline and marketing plans to continue to drive brand heat globally," Gulden said.
Shares were 0.2% higher at €238.10 by 1309 in Frankfurt, having erased an earlier loss of nearly 4%.