Adidas has once again reported better than anticipated results for the third quarter, with a 10 per cent revenue increase as compared to the last year. The company’s revenue increased by 7 per cent, reaching US $ 7.01 billion in the third quarter, with currency-neutral sales (excluding Yeezy) up by 14 per cent.
The company’s gross margin grew to 51.3 per cent with a profit of US $ 650 million. As a result, Adidas is expecting a growth rate of up to 10 per cent in 2024, up from its previous estimate of high-single-digit rate. The company also projects operating profit to reach approximately US $ 1.31 billion, exceeding the earlier forecast of US $ 1.09 billion. This revised guidance assumes the remaining Yeezy inventory will be sold at cost, potentially adding US $ 54 million to Q4 sales without affecting profit.
Adidas also gained ground in market surveys, particularly among young female consumers. In Piper Sandler’s “Taking Stock With Teens” survey, Adidas saw a significant jump in, securing 14 per cent of the vote this fall, up from 3 per cent in 2023. Overall, the brand ranked second in the top footwear category with 9 per cent of the vote.