The flagship store Adidas on Nanjing Road Pieter -street in Shanghai in China.
Cfoto Future publishing house Getty images
Adidas On Wednesday, sales increased in the fourth quarter, which exceeded the expectations, because the retailer sold the last of the other shares of Yeezy, but indicated a slower increase in revenues in the coming year.
The German giant of sportswear recorded a 19% increase in revenues at neutral currency rates to 5.97 billion euros (6.34 billion dollars) in three months, before the forecast of EUR 5.72 billion by LSEG analysts.
Operational profit amounted to EUR 57 million in the fourth quarter compared to a loss of EUR 377 million in the same period last year.
The shares fell by 2.6% shortly after the market was opened on Wednesday.
Sales full year increased by 12% according to neutral rates in currency to 23.7 billion euros, compared to the expected 23.5 billion euros. The operational profit amounted to EUR 1.34 billion in 2024, compared to the forecast of EUR 1.27 billion.
The numbers were ahead of the company's own guidelines, raised In October, in the event of an increase in revenues throughout the year by about 10% at the speed of neutral currencies and operational gains in the amount of approximately EUR 1.2 billion.
CEO of Bjorn Gulden described Wednesday's results as “much better than we expected.”
“Although we are not yet where we want to be long -term, it was a very successful year that confirmed the Adidas brand strength, the potential of our company and what fantastic work our teams do. We still have a lot to improve, but I am very proud of what our people achieved in 2024. ” he said in a statement.
In establishing forecasts for 2025, the company stated that it expected that neutral sales of the currency will increase at a high rate rate, and operating profit will increase to EUR 1.7 billion to EUR 1.8 billion.
“In 2025 we are in very good shape,” said Gulden. “Of course, there is a lot of macroeconomic uncertainty now, but with products that we think are trend and approach to being agile and more local, I do not understand why we should not succeed.”
Adidas tries to increase its market share in North America among decreasing sales in Nike and a wider retail departure from excessive arrears in weaker China.
Sales in North America ADIDAS fell by 1.6% at neutral rates in currency in 2024, in the fight for recovery after the end of its once lucrative Sneakers of Yeezy. The giant of sportswear was forced to equate the Yeezy line after the partnership with Ye, a rapper previously known as Kanye West, over a number of anti -Semitic remarks that the rapper made in 2022.
On Wednesday, the company said that in the fourth quarter it sold the rest of Yeezy.
Gulden wanted to distance Adidas from his loss of Yeezy Line and cause a broader return of the brand since the takeover of the rudder in January 2023.
Yanmei Tang, an analyst at Third Bridge, emphasized the YEEZY phase and lack of significant sporting events as winds for the coming year. She also noticed that she pointed to the need for further innovations outside his popular Samba and Gazelle sneakers in order to manage the goals of growth.
“While Adidas managed to regain adhesion in lifestyle footwear, especially along with the terrace line (Samba, Gazelle and Spezial), the peak of this trend could already pass in key markets such as Europe” – wrote Tang on the note on Tuesday.
“The brand is now changing the emphasis on newer silhouettes, such as SL 72 and the potential revival of the superstar, but it is unlikely to fully compensate for the expected slowdown in the trend on the terrace,” she said.
Adidas has been gaining on the main rival of Nike in the last quarters, and the market share in the market will increase to 8.9% in 2024. Compared to 14.1% of the latter, according to Globaldat quoted by Reuters. However, the appearance of newer brands, including ON, Hoka and New Balance, has brought increased competition to the global sportswear market, with each participation of claws over the past year.