Adidas AG (ADDYY.PK), a prominent sportswear manufacturer, has reported a notable increase in its preliminary operating profit for the third quarter, reaching 598 million euros—up from 409 million euros in the same period last year. This recent quarter's performance was bolstered by approximately 50 million euros generated from the sale of parts of their residual Yeezy stock.
On a currency-neutral basis, the company's quarterly revenues surged by 10% compared to the previous year. In euro terms, revenue saw a 7% growth, climbing to 6.438 billion euros from 5.999 billion euros the year before. Excluding the Yeezy sales from both years, adidas achieved a 14% increase in currency-neutral revenue for the quarter.
Reflecting its stronger-than-anticipated quarterly results and the positive momentum of its brand, adidas has revised its full-year outlook upward. The company now anticipates a currency-neutral revenue growth rate of approximately 10% for 2024, an increase from the previously projected high-single-digit rate. It also forecasts the annual operating profit to rise to about 1.2 billion euros, surpassing the earlier expectation of approximately 1.0 billion euros.
In its guidance, adidas has accounted for the sale of the remaining Yeezy inventory within the current year, projecting these sales will occur at roughly cost price. This scenario is expected to generate additional sales of approximately 50 million euros, without further profit impact in the fourth quarter.
