Adidas Reports 24% Revenue Growth in Q4 2024

Adidas shares are likely to fluctuate as the company reports a strong 24% revenue growth in Q4 2024. CEO Bjørn Gulden expressed satisfaction with the company's performance amid challenging trade conditions.

Date: 22-01-2025

AI Rating: 8

**Earnings Overview**: Adidas reported preliminary results for the fourth quarter of 2024, showing significant revenue growth. Currency-neutral revenues increased by 19%, and when expressed in euro terms, revenues grew 24% to €5,965 million compared to €4,812 million last year. **Revenue Growth**: The company's revenue growth is commendable, with a clear increase in the fourth quarter. Excluding Yeezy sales in both years, the growth in currency-neutral revenues was also solid at 18%. This represents a growing consumer interest in the brand's products. **Profit Margins**: The gross margin saw an improvement, rising 5.2 percentage points to 49.8% from 44.6% compared to the previous year. This increase indicates the company's ability to manage costs better and enhance profitability. **Operating Profit**: In terms of operational performance, adidas posted an operating profit of €57 million this quarter, a significant turnaround from an operating loss of €377 million the previous year. This demonstrates a strong recovery and better operational efficiency within the company. **Full-year Performance**: For the full year of 2024, adidas reported a 12% increase in currency-neutral revenues, with a rise to €23.683 billion from €21.427 billion. This full-year improvement is notable, especially when considering the previous performance was only €21.427 billion. Additionally, gross margin for the full year improved by 3.3 percentage points to 50.8%. Overall, adidas shows promise in revenue and margin growth, suggesting investor confidence could rise due to this positive trajectory in performance.

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