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Adidas has seen currency-neutral revenues rise 10% in the third quarter ended 30 September 2024, attributing the double-digit growth to “strong momentum” of the underlying Adidas business, which grew 14% over the period.
In euro terms, revenues grew 7% to €6.4bn (£5.3bn), while operating profit increased 46% to €598m (£498m).
The sale of parts of the remaining Yeezy inventory generated revenues of around €200m (£166m) in the quarter, which is significantly below the Yeezy sales in 2023 of around €350m (£291m). However, the Yeezy inventory contributed around €50m (£41m) to the company’s operating profit in the third quarter.
Footwear revenues increased 14% on a currency-neutral basis during the quarter, while apparel sales were up 5% and accessories also returned to growth and increased 10%.
The company said that demand was strong across all channels, with wholesale up 13% and direct-to-consumer (DTC) revenues grew 7% compared to the prior year. However, e-commerce revenues declined 3% because of the significantly smaller Yeezy business. Excluding Yeezy, revenues in e-commerce increased more than 25%.
During Q3, currency-neutral sales in Europe increased 18% to €2.1bn (£1.7bn), while revenues in emerging markets and Latin America were up 16% and 28% respectively. North America declined by 7.3% solely due to the Yeezy business.
The group now expects currency-neutral revenues to increase at a rate of around 10% in 2024 and operating profit is now expected to reach a level of around €1.2bn (£1bn).
Adidas CEO Bjørn Gulden said: “The third quarter was a very strong quarter for us and again better than expected. I am especially proud that we are growing in all regions, in all channels and now also in all product divisions.
“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.”
