The Adidas company increased sales by 10% on a currency-adjusted basis in the third quarter of 2024. The development was driven by a 14% increase in sales for the Adidas brand. In euros there was growth of 7% from 5.9 billion euros to 6.4 billion euros. The gross margin improved by 2 percentage points to 51.3%. The operating result increased from EUR 409 million to EUR 598 million, which corresponds to an operating margin of 9.3% (2023: 6.8%). The company’s profit from continuing operations amounted to 469 million euros (2023: 270 million euros). Basic and diluted earnings per share from continuing operations rose to EUR 2.44 (2023: EUR 1.40). Sales increased by 13% on a currency-adjusted basis via the wholesale channel and by 7% via the D2C channel. However, without taking into account the sale of remaining Yeezy stocks, D2C sales increased by 17%. Brick-and-mortar D2C stores grew double-digit, but the D2C online channel fell 3%. Here, too, a different picture emerges if the remaining Yeezy stocks are not taken into account: If these are excluded, there would be a 25% increase in sales via the online D2C channel. Currency-neutral sales in Europe increased 18% in the third quarter. Sales increased 16% in developing markets, 28% in Latin America and 18% in Japan/South Korea. An increase of 9% was recorded in China. In North America, sales fell 7%. In terms of sales excluding Yeezy, sales in North America increased compared to the previous year.
In the shoes segment, sales increased by 14% after adjusting for currency effects. The Originals models (Samba, Gazelle, Superstar, Campus, Spezial and SL 72) in particular contributed to this with a strong double-digit increase in sales. There was an increase of 5% in the clothing sector. Within this, there was strong double-digit growth in the football segment, which saw fashionable retro-style third kits designed for major European clubs, featuring the trefoil logo for the first time since 2000. There was also a 10% increase in sales in the accessories area.
The company diversified with new versions of retro sneakers to meet demand for these styles. In addition, Adidas continued to scale volumes in retro running due to the rapidly growing demand for the SL72 and launched several families of low-profile shoes, such as Taekwondo. Sales of remaining Yeezy stocks account for an ever-shrinking portion of sales. In the third quarter of 2023, 350 million euros were sold with Yeezys, in the third quarter of 2024 another 200 million euros.
“The third quarter was a very strong quarter for us and once again better than expected. 14% underlying growth for the adidas brand, a very healthy gross margin above 51% and an operating profit of €598 million are numbers that we are very happy with and evidence that we are moving in the right direction. I am particularly proud that we are growing in all regions, in all sales channels and now also in all product categories,” says Bjørn Gulden, commenting on the figures: “All of this demonstrates the strength of the Adidas brand and is a result of the great work that our people do in all markets and all functions. With the enthusiasm we have generated again for the Adidas brand, we have a great opportunity to build a connection with a new generation of consumers. This applies to both lifestyle and performance products – in all markets.”
