An adidas flagship store at Nanjing Road Pedestrian Street in Shanghai, China.
Cfoto | Future publication | Getty images
Adidas On Wednesday, the fourth quarter reported an increase in sales, which was higher than expectations, as the retailer sold the last of its remaining Yeezy stock, but pointed to slow the revenue growth in the coming year.
The German Sportswear giant recorded a 19% increase at a 19% euro ($ 6.34 billion) by LSEG analysts in a period of 5.72 billion euros at a period of three months on neutral currency rates.
The operational benefits in the fourth quarter came to 57 million euros in the fourth quarter compared to the loss of 377 million euros in the same period last year.
The stocks fell by 2.6% soon after the market opened on Wednesday, before it was traded up to 0.7% till 11:30 pm before reversing the course.
Full year sales increased by 12%, currency at neutral rates 23.7 billion euros, vs an anticipated 23.5 billion euros. The operating profit in 2024 was 1.34 billion euros in 2024 compared to the forecast of 1.27 billion euros.
Statistics came forward with the company’s own guidance, raised In October, for a revenue increase of about 10% on the rates of currency-plated rates and about 1.2 billion euros.
CEO Byorn Gulden “better than Wednesday’s results” better than what we expected. “
“Although we are not yet where we want to stay for a long time, it was a very successful year that confirmed the strength of the Adidas brand, our company’s ability and what our teams are doing a great job. We still have a lot of improvement, but I am very proud of what our people achieved in 2024,” they said in a statement.
Underlining its forecasts for 2025, the company said that the currency neutral sales will increase the rate and operating profit of high-assignment and operating profit that increases between 1.7 billion euros and 1.8 billion euros.
“We are in great shape for 2025,” Gulden said. “Of course there is a lot of comprehensive economic uncertainty, but with the products that we think is on the trend and the attitude of being tight and more local, I can’t see why we should not succeed.”
Adidas Nike is trying to increase its market share in North America amidst the decline in sales and is a comprehensive retailer shift away from a comprehensive dependence on a weaker China.
Adidas’s North America’s sales fell 1.6% at the currency-plated rates in 2024, struggling to recover from the end of the Yizi sneaker line. The Sportswear giant, after ending his partnership with the X, was known as the east Kanye West, known as wrappers in 2022.
The company said on Wednesday that it had sold its remaining Yeezy Inventory in the fourth quarter.
Gulden is looking at the brand’s widespread changes since the hull in January 2023, Gulden is looking at the adidas from the Yizi line that causes its loss.
Third Bridge analyst Yanmei Tang highlighted the absence of important sports events in the form of phased and headwinds for further year. He also noted that its popular Samba and Gazel sneakers indicated the need for further innovation beyond the goals of development.
Tang wrote in a note on Tuesday, “While Adidas has managed to regain traction in lifestyle footwear, especially with its roof line (Samba, Gazel, and Spasial), the peak of this trend may already be passed in major markets like Europe.”
He said, “The brand is now focusing on a new silhouette such as SL 72 and the possible revival of superstar, but it is unlikely to compensate completely for the expected recession in the roof trend,” he said.
According to Globaladata, the Adidas is gaining land against the major rival Nike in the recent quarters, in 2024 the east market share is 8.9% versus to 14.1%. Quoted By Reuters. However, the emergence of new brands including On, Hoca and New Balance has increased the global sports market, with each claw share in the last one year.
