Adidas Is On a Roll: Company Raises Full-Year Revenue Outlook After Strong Q3

Adidas has raised its guidance for the year once again after reporting better-than-expected preliminary results for the third quarter. According to the German athletic company, currency-neutral revenues increased 10 percent compared to the prior year. In euro terms, the company’s revenues grew 7 percent to 6.438 billion euros in the third quarter. Currency-neutral revenues minus Yeezy sales were were up 14 percent in the quarter. Gross margin grew to 51.3 percent in Q3 and operating profit increased to 598 million euros, which includes 50 euros worth of Yeezy sales. As a result, Adidas now expects currency-neutral revenues to increase at a rate of 10 percent in 2024. This is up from its previous guidance for an increase in the high-single-digit rate. Operating profit is now expected to reach a level of around 1.2 billion euros, up from the previously forecast of 1 billion euros. The guidance assumes that Adidas sells off its remaining Yeezy inventory at cost, on average, which would result in an additional 50 million euros in sales and no profit impact in Q4. The results stand in contrast to rival Nike, who this week welcomed a new chief executive officer to help fix longstanding issues in distribution, innovation and culture. Earlier

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