Germany’s Adidas AG raised its 2024 revenue and operating profit guidance amid stronger-than-expected second-quarter results.
According to the new forecast, the increase in Adidas revenue excluding exchange rate differences will be 8-9% in 2024, and the operating profit will reach 1 billion euros, the company reports.
Earlier, the company predicted revenue growth of 5-9% and expected an operating profit of EUR 7,000,000,000.
According to preliminary data, the revenue of Adidas in the second quarter increased by 9%, up to 5822000000 euros. Excluding exchange rate differences, the growth was 11 percent. The increase in revenue excluding the Yeezy brand was 16 percent.
The operating profit of Adidas in the reporting period amounted to 346 million euros against 176 million euros for the same period in 2023. The indicator includes the amount of 50 million euros received from the sale of the remaining Yeezy products.
The company expects that currency fluctuations will continue to negatively affect its profitability in 2024.
As a reminder, analysts expect that in 2024 Adidas will reach the highest level has come in the past three years due to the success of the Samba and Gazelle sneakers and the fall in sales of American rival Nike.