adidas Achieves Strong Growth in Q4 2024 Revenues
In a remarkable financial unveiling, adidas revealed that its preliminary results for Q4 of 2024 show an impressive 19% increase in currency-neutral revenues. When converted to euros, this substantial growth translates to a 24% rise, culminating in total revenues of €5,965 million. This is a noteworthy increase from €4,812 million recorded in the previous year. Notably, even when excluding Yeezy sales, currency-neutral revenues still showcased an 18% uptick.
Significant Financial Improvements Across the Board
Throughout the fourth quarter, adidas also experienced a substantial improvement in gross margin, which rose by 5.2 percentage points to 49.8%. This is a noteworthy increase from the 44.6% gross margin achieved in 2023, indicating enhanced profitability. Additionally, the company's operating profit for the quarter stood at €57 million, a significant turnaround from the operating loss of €377 million seen in the same quarter of the previous year.
Overview of Full-Year Performance for 2024
Looking at the full year, adidas's currency-neutral revenues witnessed a notable increase of 12%. When expressed in euro terms, this resulted in an 11% rise from the previous year, amounting to €23,683 million, compared to €21,427 million in 2023. Excluding Yeezy sales again showed a 13% increase in currency-neutral revenues. The company's gross margin for the year also saw improvements, climbing by 3.3 percentage points to 50.8%, surpassing the 47.5% margin from 2023. Furthermore, the full-year operating profit surged to €1,337 million, a remarkable increase from €268 million recorded in 2023.
CEO's Vision and Future Outlook
Bjørn Gulden, the CEO of adidas, shared his optimism during a recent statement, emphasizing his satisfaction with not only the fourth quarter performance but also the trajectory of the company throughout the entire year of 2024. He pointed out the growing momentum and heightened consumer interest in adidas products across both the Lifestyle and Performance segments. He acknowledged a remarkable growth pattern witnessed across various regions and divisions, crediting this success to the relentless efforts of their dedicated teams.
Long-Term Goals Amid Challenges
While expressing pride in the advancements made during the year, Gulden frankly noted that there is still room for growth towards their long-term ambitions. His positive outlook stems from the belief that adidas has strong potential to increase its market share in all regions despite the ongoing macroeconomic uncertainties. He expressed the company's aim to maintain double-digit growth with the adidas brand and to enhance operating profits further, setting sights on achieving a 10% margin target.
Anticipated Financial Guidance Update
In the coming months, adidas plans to release its finalized financial results for 2024, accompanied by financial guidance for the year 2025. This update is set for March 5, 2025, which promises to shed light on the company’s future strategies and expectations moving forward.
Frequently Asked Questions
What was the revenue growth for adidas in Q4 2024?
adidas reported a 19% increase in currency-neutral revenues for Q4 2024.
How did adidas perform for the entire year of 2024?
The company saw an 11% increase in revenues in euro terms, reaching €23,683 million.
What is the gross margin improvement for adidas?
adidas's gross margin improved by 5.2 percentage points to reach 49.8% in Q4 2024.
When will adidas publish its final financial results for 2024?
The company plans to publish its final financial results on March 5, 2025.
What are the future targets for adidas?
adidas aims for double-digit growth and to achieve a 10% margin target in the future.
