In the third quarter, Adidas reported a 10 per cent increase in currency-neutral revenue. Revenues increased 7 per cent to US $ 6.95 billion. Adidas anticipates operating profit to reach US $ 1.3 billion this year, and currency-neutral revenues to rise at a rate of about 10 per cent.
The company credited the double-digit rise to the robust expansion of the Adidas division, which expanded by 14 per cent. Revenues from the sale of some of the leftover Yeezy inventory came to about US $ 216 million during the quarter, which was a lot less than Yeezy sales during the previous year.
During the quarter, the company’s footwear revenues grew by 14 per cent on a currency-neutral basis, with Originals seeing double-digit growth. The broad-based growth in footwear was also aided by double-digit growth in sportswear and growth in performance categories like football, running, training, golf and speciality sports.
In a press release, Adidas stated that double-digit growth in football was the primary driver of the 5 per cent increase in apparel sales, while accessories saw a 10 per cent gain in the quarter. Lifestyle revenues grew by double digits on a currency-neutral basis during the quarter, and performance likewise saw double-digit growth, with gains in nearly every performance category.
Direct-to-consumer (DTC) sales increased 7 per cent over the previous year, while wholesale sales of Adidas increased 13 per cent on a currency-neutral basis in the third quarter. The company’s DTC business expanded by 17 per cent excluding Yeezy.
According to the corporation, the much smaller Yeezy business caused a 3 per cent drop in e-commerce revenues during the quarter. E-commerce revenues rose by more than 25 per cent excluding Yeezy.
During the first nine months of 2024, currency-neutral revenues increased by 10 per cent. Revenues increased 7 per cent to US $ 19.14 billion.
The company added that an 11 per cent currency-neutral gain in the core Adidas business was the primary driver of the top-line development. Additionally, more than US $ 594 million in revenue was generated from the sale of some of the remaining Yeezy inventory.
The company’s operational profit increased to US $ 1.38 billion, indicating an operating margin of 7.2 per cent, while its gross margin increased by 2.7 percentage points to 51.1 per cent.
