Adidas raises 2024 operating profit outlook to EUR 700M from EUR 500M

Adidas said that a a result of the better than expected performance during Q1, the company has increased its full-year guidance. Adidas now expects currency-neutral revenues to increase at a mid- to high-single-digit rate in 2024 versus an increase at a mid-single-digit rate previously. The company’s operating profit is now expected to reach a level of around EUR 700M versus a level of around EUR 500M previously. Adidas said, “The latest Yeezy drop generated revenues of around EUR 150 million and an operating profit of around EUR 50 million in the first quarter. In its guidance, the company assumes the sale of the remaining Yeezy inventory during the remainder of the year to occur on average at cost. This would result in additional sales of around EUR 200 million and no further profit contribution during the remainder of the year. The company continues to expect unfavorable currency effects to weigh significantly on the company’s profitability this year. These effects are projected to continue to negatively impact both reported revenues and the gross margin development in 2024.”