Adidas AG ADDYY reported preliminary results for the first quarter of 2024, with an 8% increase in currency-neutral revenues. In euro terms, revenues grew 4% to €5.458 billion in the quarter.
The company's gross margin improved 6.4% points to 51.2% during the quarter compared to 44.8% last year.
Operating profit marked a significant jump to €336 million from €60 million last year.
The latest Yeezy drop generated revenues of around €150 million and an operating profit of around €50 million in the first quarter.
The remaining Yeezy inventory would lead to additional sales of about € 200 million and no further profit contribution during the remainder of the year.
Guidance: Adidas increased its full year revenue guidance and sees currency-neutral revenues to increase at a mid- to high-single-digit rate in 2024 from the previous mid-single-digit rate growth.
The German footwear maker also increased its operating profit guidance to around €700 million from around €500 million.
Adidas expects unfavorable currency effects to weigh significantly on its profitability in 2024.
Image by chinnian on Flickr
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
