Adidas has wrapped up 2024 with remarkable financial results, exceeding expectations in the fourth quarter. The sportswear giant has showcased significant growth across revenues and profits, signaling a strong resurgence for the brand in both the Lifestyle and Performance categories.
In the final quarter of 2024, Adidas reported a 19% growth in currency-neutral revenues, while in euro terms, revenues increased by 24% to €5.9 billion, compared to €4.8 billion in the same period of 2023.
Notably, even when excluding the impact of Yeezy sales, currency-neutral revenues climbed by an impressive 18%.
The company’s gross margin expanded by 5.2% points, reaching 49.8%, a significant improvement from 44.6% in 2023. Adidas also achieved an operating profit of €57 million, a sharp turnaround from the €377 million operating loss recorded in the previous year.
For the full year of 2024, Adidas posted currency-neutral revenue growth of 12%, with euro-denominated revenues rising by 11% to €23.6 billion compared to €21.4 billion in 2023.
The company’s gross margin for the year improved by 3.3% points, hitting 50.8%, up from 47.5% in 2023. Furthermore, Adidas’s operating profit skyrocketed by over €1 billion, reaching €1.3 billion, compared to just €268 million in the previous year.
“I am very pleased with how the fourth quarter and the full year unfolded for Adidas. Despite challenging market conditions, our 19% currency-neutral growth in Q4 demonstrates the strong momentum of our brand and products.”
Bjørn Gulden, Adidas CEO
While Adidas acknowledges the macroeconomic uncertainties ahead, the company remains optimistic about its future.
Adidas has set an ambitious goal to achieve double-digit growth once again, improve its operating profit, and move closer to its 10% margin target.
