Adidas has raised its guidance for the year once again after reporting better-than-expected preliminary results for the third quarter.
According to the German athletic company, currency-neutral revenues increased 10 percent compared to the prior year. In euro terms, the company’s revenues grew 7 percent to 6.438 billion euros in the third quarter. Currency-neutral revenues minus Yeezy sales were were up 14 percent in the quarter.
Gross margin grew to 51.3 percent in Q3 and operating profit increased to 598 million euros, which includes 50 euros worth of Yeezy sales.
As a result, Adidas now expects currency-neutral revenues to increase at a rate of 10 percent in 2024. This is up from its previous guidance for an increase in the high-single-digit rate. Operating profit is now expected to reach a level of around 1.2 billion euros, up from the previously forecast of 1 billion euros. The guidance assumes that Adidas sells off its remaining Yeezy inventory at cost, on average, which would result in an additional 50 million euros in sales and no profit impact in Q4.
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The results stand in contrast to rival Nike, who this week welcomed a new chief executive officer to help fix longstanding issues in distribution, innovation and culture. Earlier this month, Nike withdrew its guidance for fiscal year 2025 after reporting Q1 revenues that were down 10 percent to $11.59 billion.
According to Piper Sandler’s 48th semi-annual “Taking Stock With Teens” survey, Adidas saw the biggest increase in popularity among female respondents, where it accounted for 14 percent of the vote this fall among the demo, up from 3 percent in fall 2023. Overall, Adidas ranked No. 2 in the top footwear brands list with 9 percent of the vote. Nike ranked number one in top footwear brands but Nike shed 4 points year-over-year.
