Adidas reported strong performance for 2024, with double-digit growth in Europe, North America, Greater China, emerging markets, and Latin America in the fourth quarter. However, due to earnings guidance falling short of expectations, Adidas' European stock price declined.
On March 5, Adidas released its 2024 &amp; fourth quarter financial report:
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1) Key Financial Data
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Revenue: In the fourth quarter, Adidas' global revenue reached €5.97 billion, a year-on-year increase of 24%, and a currency-neutral growth of 19%, exceeding expectations; for the full year, currency-neutral sales grew by 12% to €23.7 billion.
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Profit: In the fourth quarter, Adidas' operating profit was €57 million, compared to a loss of €377 million in the same period last year. The full-year operating profit increased by over €1 billion to €1.337 billion.
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Gross Margin: In the fourth quarter, the company's gross margin improved by 5.2 percentage points to 49.8%, compared to 44.6% in the same period last year. The full-year gross margin increased by 3.3 percentage points to 50.8%.
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Guidance: Adidas expects operating profit for 2025 to be between €1.7 billion and €1.8 billion, with an estimate of €2.04 billion, below market expectations.
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Due to the earnings guidance falling short of expectations, Adidas' European stock fell by 2.69%.
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Adidas CEO Bjørn Gulden stated:
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“I am very pleased with Adidas' development in the fourth quarter and for the entire year. We achieved double-digit growth (+12% currency-neutral) in 2024 and increased our operating profit by over €1 billion to €1.337 billion. This development is much better than we expected, and we are certainly very happy about it. Although we have not yet reached our long-term goals, it has been a very successful year. We still have many areas to improve, but I am very proud of our employees for their achievements in 2024.”
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Additionally, the company announced today that it has sold the remaining Yeezy inventory in the fourth quarter. Previously, the sportswear giant was forced to cancel the Yeezy series after terminating its partnership with Ye (formerly known as Kanye West).
<h2>Q4 Footwear Business Grew 26% Year-on-Year, Greater China Revenue Accelerated to 15% Year-on-Year</h2>
From a regional perspective, excluding currency factors, North America and Greater China returned to double-digit revenue growth, accelerating to 16% and 15%, respectively, while net sales in Europe, emerging markets, and Latin America grew by 25%, 21%, and 31%, respectively.
From a product category perspective, Adidas' footwear business led the company's growth in the fourth quarter of 2024. Excluding currency factors, sales increased by 26% year-on-year, primarily driven by strong growth in Originals, football, training, high-performance basketball, and sportswear, boosting the overall footwear business
In the apparel business, thanks to double-digit growth in football, running, golf, and sportswear, revenue from apparel products increased by 11%. Additionally, categories such as Originals and basketball also saw significant growth. Accessories grew by 7% in the fourth quarter, while lifestyle revenue achieved double-digit growth.
Notably, Reuters cited data from Globaldata indicating that Adidas has been competing with its main rival Nike for market share in recent quarters. The data shows that Adidas's market share is expected to rise to 8.9% in 2024, but it will still be lower than Nike's 14.1%

ADDYY

Adidas reported an operating profit of €57 million in the fourth quarter, compared to a loss of €377 million in the same period last year, with a gross margin increase of 5.2 percentage points to 49.8%. Adidas expects an operating profit of €1.7 billion to €1.8 billion in 2025, below market expectations

- Adidas reported strong performance for 2024, with double-digit growth in Europe, North America, Greater China, emerging markets, and Latin America in Q4.  
- Despite a 24% year-on-year revenue increase to €5.97 billion in Q4 and an annual revenue growth of 12% to €23.7 billion, the stock fell 2.69% due to profit guidance falling short of expectations.  
- CEO Bjørn Gulden expressed satisfaction with the results, highlighting significant improvements in operating profit and the successful sale of remaining Yeezy inventory after ending the partnership with Ye.

Adidas Q4 revenue increased by 24% year-on-year, but profit guidance did not meet expectations | Financial Report Insights