Sports apparel brand Adidas has reported a net income from continuing operations of €171m ($182m) in the first quarter (Q1) of fiscal 2024 (FY24), compared to a net loss of €24m in Q1 FY23.
The company’s basic earnings per share from continuing operations stood at €0.96 in Q1 FY24, this compared to a loss per share of €0.18 in Q1 FY23.
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Adidas saw its currency-neutral revenues grow by 8% during the year, with a 5% increase attributed to the core Adidas business.
Revenues from the footwear and apparel segments grew by 13% and 2% respectively during the first quarter.
Over all, the company’s direct-to-consumer (DTC) business was a significant growth driver, with a 20% increase in currency-neutral terms.
Sales in Adidas’ retail stores climbed by 11%, while e-commerce revenues surged by 34% during the quarter.
Regionally, Europe led with a 14% increase in currency-neutral sales, bolstered by strong performance in both DTC and wholesale channels.
Revenues in North America experienced a 4% decline, however, revenues rose in emerging markets and Latin America by 17% and 18% respectively.
Adidas’ operating profit for Q1 FY24 reached €336m, which marks a substantial rise from €60m in the same quarter of the previous year.
Adidas CEO Bjørn Gulden said: “I am very happy to see that the business in Q1 developed better than we had expected. Sales, gross margin and operating profit were all better than initially planned. Our full-price sales in our DTC channels were strong and our sell-out with our retail partners was higher than the sell-in. This means lower inventories, [fewer] discounts and better gross margins both for our retail partners and for us.”
The company has revised its full-year 2024 outlook, and is now expecting currency-neutral revenues to grow at a mid-to-high single-digit rate, with an anticipated operating profit of €700m.
