Adidas Done With Yeezy Inventory, Q4 Revenue Jumps 19%

Adidas AG ADDYY has reported fourth-quarter FY24, currency-neutral revenues growth of 19%.

In euro terms, the sportswear and sneaker company saw a 24% increase in revenue. It reached 5.97 billion euros ($6.38 billion) — up from 4.81 billion euro in the same quarter in 2023.

Robust performances in both footwear and apparel categories boosted sales. A final push from the sale of Yeezy inventory generated an additional €50 million in revenue.

Adidas posted a 26% increase in footwear sales, driven by demand for high-performance products like Originals, Football, and Basketball models.

Apparel sales rose 11%, with gains across various sports and lifestyle categories, including Football and Running.

The Lifestyle segment saw a significant uptick, particularly driven by new releases such as the Climacool 3D-printed shoe and partnerships with high-profile collaborators like Stella McCartney and Bape.

Sales were up across all global markets, with double-digit growth recorded in North America (+15%), Greater China (+16%), and Emerging Markets (+21%).

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The company's wholesale segment also performed strongly, increasing by 25%, while direct-to-consumer (DTC) sales rose by 15%. E-commerce revenues showed a 10% increase, reflecting adidas's continued investment in its digital platforms.

Adidas achieved a gross margin of 49.8% in fourth-quarter, marking a 5.2% improvement from the previous year. The margin expansion was driven by lower product and freight costs, reduced discounting, and a favorable product mix.

The company's operating profit for the quarter stood at €57 million, a turnaround from last year's loss of €377 million.

Adidas will also approve a dividend of 2 euro per share to shareholders on May 15.

“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,” said CEO Bjørn Gulden

Outlook 2025: Looking ahead, Adidas expects currency-neutral sales to increase at a high-single-digit rate in 2025, with strong double-digit growth anticipated in markets like North America and Greater China.

The company also forecasts an increase in operating profit to between 1.7 billion euro and 1.8 billion euro.

The company does not expect any contributions from Yeezy revenues or profits in 2025, following the completion of the inventory sale in 2024.

Price Action: ADDYY shares closed lower by 1.39% at $127.63 on Tuesday.

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