Adidas Raises 2024 Sales Forecast After Impressive Third Quarter Results
German sportswear giant adidas is on the rise, with Reuters reporting that the brand has increased its 2024 sales forecast following a strong third quarter. This marks the third time this year that adidas has raised its revenue guidance, thanks to its “brand momentum” and high demand for popular franchises like the Samba and Gazelle footwear models.
As the brand bounces back from the loss of its once-popular YEEZY line, adidas now predicts that its currency-neutral revenues will grow by approximately 10% in 2024, a significant increase from its previous estimate of high single digits. The company also expects its operating profit to reach €1.2 billion EUR, up from its previous forecast of €1 billion EUR.
In the third quarter, adidas saw a 7% increase in revenue, reaching €6.438 billion EUR, surpassing analysts’ expectations of €6.416 billion EUR. This quarter’s sales were also up 14% from last year, excluding sales from YEEZY. The brand’s operating profit for Q3 was €598 million EUR, a significant increase from last year’s €409 million EUR. According to adidas, sales from existing YEEZY products contributed approximately €50 million EUR in profit.
While the company does not expect the remaining YEEZY stock to contribute to overall profit, its latest guidance does assume that the final products from the collaboration will result in an additional €50 million EUR in sales. With these impressive results and forecasts, it’s clear that adidas is making a strong comeback and solidifying its position as a top player in the sportswear industry.
