Adidas reports Strong Results for 2024

Major developments Q4 2024:

Gross margin improves 5.2pp to 49.8% due to lower product and freight costs, more favorable business mix as well as reduced discounting

Operating profit of € 57 million compared to prior-year loss of € 377 million

adidas CEO Bjørn Gulden commented

“I am very pleased the way the fourth quarter and the full year developed for us at adidas. We grew double digits in 2024 (+12% currency-neutral) and improved our operating profit by more than € 1 billion to € 1.337 billion. This development was much better than we had expected, and we are of course very pleased with this. Although we are not yet where we want to be long term, it was a very successful year that confirmed the strength of the adidas brand, the potential of our company and what a fantastic job our teams are doing. We still have a lot to improve but I am very proud of what our people achieved in 2024. Going from single-digit growth at the beginning of the year to 19% currency-neutral growth in a fourth quarter, that in general was difficult for the trade, underlines the strong momentum we currently see for our brand and our products. We clearly see that consumers’ and retailers’ interest is growing across both Lifestyle and Performance and also across all markets. This has only been possible because of our attitude of going into the market with what is relevant for the local consumer. Growing double digits in Europe and also in Greater China, in a tough environment, or starting to grow double digits in Q4 in North America, wouldn’t have been possible without this attitude.

We also feel good about the future, and we see potential to increase our market share in all markets. I think for 2025 we are in very good shape. I am confident we have the product pipeline and marketing plans to continue to drive brand heat globally. Of course there is a lot of macroeconomic uncertainty right now, but with products that we think are on trend and the attitude of being agile and more local, I cannot see why we should not be successful. That’s why I think we will again grow at least 10% with the adidas brand in 2025 and use this growth to continue to improve our operating profit to between €1.7 and €1.8 billion. This means we will again make progress on our way to become a healthy company with a 10% operating margin.

With all the challenges out there, let’s not forget that there are so many fun things to look forward to in 2025. Personally, I look forward to see a continuous improvement in what we do and see the team feel they are improving and winning.”

Outlook for 2025

Currency-neutral sales to increase at a high-single-digit rate in 2025Despite persisting macroeconomic and geopolitical challenges, adidas expects to gain further market share and grow the company’s currency-neutral sales at a high-single-digit rate in 2025. This reflects continued double-digit growth for the adidas brand. A significantly better, broader, and deeper product range combined with an increased focus on local consumer preferences as well as much improved retailer relationships will be the main drivers of the projected top-line increase. In addition, impactful marketing initiatives will further add to the company’s brand momentum and fuel the expected top-line growth.

Significant growth expected in all market segments. Currency-neutral revenues are projected to grow strongly in all markets in 2025. Specifically, the company expects sales for the adidas brand to grow at a double-digit rate in North America, Greater China, Emerging Markets, and Latin America. Revenues in Europe and Japan/South Korea are projected to increase at a high-single-digit rate.

Operating profit to increase further to between € 1.7 billion and € 1.8 billion while adidas will continue to increase marketing and sales investments, operating overhead efficiencies will allow the company to leverage its strong top-line growth. In combination with continued gross margin expansion, this is expected to lead to further significant bottom-line improvements in 2025. As a result, the company projects operating profit to increase to a level of between € 1.7 billion and € 1.8 billion in 2025.