Adidas has raised its operating profit forecast for 2024 to nearly £1bn, following a performance that exceeded expectations in recent months. The sportswear behemoth is now targeting an operating profit of approximately €1.2bn (£997m) for the current financial year, up from its previous estimate of around €1bn.
This comes after the company's operating profit soared to €598m in the third quarter, compared to €409m during the same period in 2023. Adidas' net income from ongoing operations also increased to €449m, while it experienced double-digit growth in its lifestyle and performance sectors, as reported by .
The firm, which has a º£½ÇÊÓƵ head office in Stockport, noted that its currency-neutral sales rose by 10 per cent, a surge driven by a 14 per cent increase in the Adidas brand in the third quarter.
In a trading update, CEO Bjrn Gulden said: "The third quarter was a very strong quarter for us and again better than expected."
He added: "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."
Gulden expressed particular pride in the company's growth across all regions, channels, and product divisions, stating: "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 surged for Adidas, seeing a 14 per cent uplift driven by heightened demand across its originals and performance segments, including running and football.
The company's report also highlighted robust gains in apparel, including accessories, buoyed by successful partnerships such as with Wales Bonner and sought-after collections.
Adidas noted a 13 per cent climb in its wholesale revenue and recorded a 7 per cent rise in its direct-to-consumer sector.
E-commerce revenues, excluding the Yeezy lineup, were up by an impressive 25 per cent.
Regionally, Europe's arm of Adidas experienced a strong uptick, with an 18 per cent increase in growth.
