Adidas is now predicting its operating profit to swell to almost £1bn for 2024 as it upped its forecasts following a better-than-expected performance in recent months.
The sportswear giant is now eyeing an operating profit of around €1.2bn (£997m) for its current financial year, a rise from its previous guidance of around €1bn.
The increase comes after the firm’s operating profit jumped to €598m in its third quarter, compared to the €409m it achieved during the same three months in 2023.
Adidas’ net income from continuing operations also improved to €449m while it saw double-digit growth in its lifestyle and performance segments.
The group added that its current-neutral sales rose by 10 per cent, an increase which was driven by the Adidas brand surging by 14 per cent in the third quarter.
‘Numbers that we are very happy with’ – Adidas boss
In a trading update, chief executive Bjørn Gulden said: “The third quarter was a very strong quarter for us and again better than expected.
“14 per cent underlying growth for the adidas brand, a very healthy gross margin above 51 per cent and an operating profit of €598m are numbers that we are very happy with and a proof that we are moving in the right direction.
“I am especially proud that we are growing in all regions, in all channels and now also in all product divisions.
“Double-digit growth in both lifestyle and performance shows the currently good ‘balance’ in our business.
“The strong underlying growth in Greater China and the earlier-than-expected turn to positive numbers for the adidas brand in North America during the last two quarters strengthens our confidence for the mid-term future.
“This shows the strength of the adidas brand and is a result of the great job our people are doing in all markets and all functions.
“With the heat we have again created for the Adidas brand, we have a generational opportunity to connect with a new generation of consumers both in lifestyle and performance – and that in all markets.
“Our focus is now to continue this momentum and to build a solid platform for future growth and to make adidas a great company again.”
Footwear sales came out on top for Adidas, increasing by 14 per cent due to an increase in demand for its originals and performance categories such as running and football.
The results showed that apparel, including accessories, also achieved robust gains driven by successful partner collaborations such as Wales Bonner and popular collections.
Adidas added that its wholesale revenue increased by 13 per cent and its direct-to-consumer market also up 7 per cent.
Without counting in the Yeezy range, its e-commerce revenue rose by 25 per cent.
The company also had a strong regional growth, with Europe’s arm increasing 18 per cent.