adidas Reports Strong Q3 Profit and Raises Full-Year Guidance

In a recent report, adidas AG announced a significant increase in its third-quarter operating profit, rising to 598 million euros. The company also raised its full-year guidance, anticipating stronger revenue growth and operating profit.

Date: 16-10-2024

AI Rating: 8

adidas AG reported a notable increase in both its operating profit and revenues for the third quarter. Specifically, the operating profit rose to 598 million euros compared to 409 million euros from the previous year, indicating a strong performance in the face of market challenges.

The report highlighted a 10% increase in currency-neutral revenues year-over-year. In euro terms, revenues also grew by 7% to 6.438 billion euros, up from 5.999 billion euros last year. This growth is especially significant when excluding Yeezy sales, as the company reported a 14% increase in currency-neutral revenues during the quarter.

Furthermore, adidas has raised its full-year guidance based on a better-than-expected performance, now predicting currency-neutral revenues to increase at a rate of around 10% for 2024, an upgrade from the previous high-single-digit expectations.

The expectations for annual operating profit have also been adjusted upwards to around 1.2 billion euros from a prior estimate of 1.0 billion euros.

Overall, these adjustments reflect the company's confidence in its current brand momentum and operational capabilities, contributing positively to investor sentiment.

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