Investing.com -- Adidas raised its full-year guidance on Tuesday following strong third-quarter results, driven by solid brand momentum and better-than-expected sales.
The sportswear giant reported a 10% increase in currency-neutral revenue compared to the same period last year, with euro-denominated revenue rising 7% to €6.44 billion, up from €5.99 billion in 2023.
Excluding sales related to the Yeezy brand, currency-neutral revenue climbed 14% during the quarter, underscoring the company’s robust underlying growth.
Adidas (OTC:ADDYY) also reported improved profitability, with its gross margin rising 2 percentage points to 51.3%, compared to 49.3% in Q3 2023. Operating profit surged to €598 million, boosted by approximately €50 million from sales of remaining Yeezy inventory.
Following this positive performance, Adidas has adjusted its 2024 outlook.
The company now expects full-year currency-neutral revenue growth of around 10%, up from its previous forecast of high single-digit growth.
Operating profit guidance has also been raised, with Adidas projecting €1.2 billion for the year, an increase from its earlier target of €1 billion.
Adidas’s updated guidance includes assumptions around the sale of the remaining Yeezy inventory, expected to generate around €50 million in additional sales at cost without contributing to further profit in Q4.
The company's stronger-than-expected Q3 results reflect its ability to navigate market challenges and build momentum across its core brand portfolio despite recent headwinds.