adidas, a German maker of athletic shoes and apparel, has reported a substantial 7.3% growth in net sales, reaching €6.43bn ($6.94bn) in the third quarter (Q3) of the fiscal year 2024 (FY24), compared with €5.99bn in Q3 FY23.
This performance, indicating progress in the revival plan spearheaded by chief executive officer Bjørn Gulden, is highlighted by a currency-neutral revenue increase of 10%, propelled by a robust 14% growth in core adidas business.
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adidas saw its operating expenses rise by 10% to €2.83bn in Q3 FY24, while operating profit grew by 46.0% to €598m, indicating an operating margin of 9.3%.
The sale of the remaining Yeezy inventory contributed €50m to the quarter’s operating profit.
adidas CEO Bjørn Gulden said: “The third quarter was a very strong quarter for us and again better than expected. 14% underlying growth for the adidas brand, a very healthy gross margin above 51% and an operating profit of €598m are numbers that we are very happy with and proof that we are moving in the right direction. I am especially proud that we are growing in all regions, in all channels and now also in all product divisions.”
During the quarter ending 30 September 2024, adidas’ net income from continuing operations soared by 73.4% to €469m, up from €270m in the previous fiscal year.
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By GlobalDataThe company’s basic and diluted earnings per share from continuing operations also improved to €2.44 from €1.40.
The footwear segment saw a notable 14% rise on a currency-neutral basis in Q3 FY24, while apparel sales grew by 5%, largely due to a surge in football-related revenues.
Wholesale channels experienced a 13% increase, and direct-to-consumer revenues climbed by 7%.
However, e-commerce revenues dipped by 3%, affected by the reduced Yeezy business. Excluding this factor, however, e-commerce saw an uplift of over 25%.
Regionally, Europe led with an 18% sales boost. Emerging Markets and Latin America followed with increases of 16% and 28% respectively, and Japan/South Korea matched Europe’s growth rate. Greater China posted a 9% rise, but North America faced a 7% decline.
On 15 October 2024, adidas raised its top and bottom-line outlook.
The company now expects currency-neutral revenues to grow by 10% in FY24, compared to the high-single-digit rate previously expected.
The company has raised its operating profit outlook to €1.2bn from €1.0bn.
In the first half of FY24, adidas announced a 10% increase in currency-neutral revenues compared to the same period of FY23.
