Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Strong festive demand and the booming popularity of classic trainers propelled Adidas to better than expected profits in the final quarter of 2024, sending shares up 7 per cent on Wednesday.
The German sportswear group on Tuesday evening reported an operating profit of €57mn for the three month period, compared with a €377mn loss in the final quarter of 2023.
Adidas said the growth was driven both by its fashion and its sports performance shoes and was “strong . . . across all regions and divisions. Shares in the company surged almost 7 per cent on Wednesday morning, outperforming the Dax index.
The group’s performance represents a rebound from a challenging 2023 marked by the fallout from ending its Yeezy partnership with rapper and designer Ye.
Adidas has been undergoing a turnaround under chief executive Bjørn Gulden, who was poached from Puma in early 2023, and enjoying soaring demand for its Samba and Gazelle sneakers. In April last year, the group said the popularity of shoes including those models was so high that it was delaying product launches to maintain the brand’s appeal.
On Tuesday, Gulden said he felt “good about the future,” and saw “potential to increase our market share in all markets”, noting that the fourth quarter was “generally difficult for the trade”.
Under Gulden’s leadership, the company has shifted its focus away from direct-to-consumer sales and returned to closer collaboration with retail partners, and upgraded its full-year guidance several times last year.
According to the preliminary figures, revenue for the full year was up 12 per cent, hitting €23.7bn, with sales excluding Yeezy rising 13 per cent year on year. Operating profits rose more than €1bn to €1.3bn, slightly above Adidas’s previous guidance.
The company will publish final results on March 5, along with financial guidance for 2025.
Gulden said the company was aiming to grow again by double digits and make further progress towards its 10 per cent margin target.
Adidas shares have risen about 56 per cent over the past year, outperforming larger US rival Nike.
