German sportswear giant adidas exceeded its revenue growth projections for the fiscal year 2024, recording a 12% surge on a currency-neutral basis.  

Net revenues for the fiscal year were €23.68bn compared with €21.42bn in FY23. 

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This performance outpaces the initial single-digit growth forecasts and even the revised expectation of around 10% set in October. 

Final sales of Yeezy merchandise in the fourth quarter contributed revenues of €650m. 

The company’s wholesale revenues rose 14%, driven by successful sell-through rates and increased shelf space allocations. Excluding Yeezy transactions, direct-to-consumer (DTC) revenues saw a 16% uplift, culminating in an overall 11% revenue growth. 

On a regional scale, adidas achieved a 19% currency-neutral net sales growth in Europe. Emerging markets and Latin America also reported significant double-digit increases of 19% and 28%, respectively.  

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The Japan/South Korea region enjoyed a 10% rise, thanks to improved DTC operations, while North America experienced a marginal 2% dip attributed to the reduction in Yeezy sales. 

Gross margin for adidas improved to 50.8% in FY24, up from 47.5% in the previous year, benefiting from lower freight and product costs, an enhanced business mix and reduced discounting. 

Other operating expenses witnessed a 9% year-on-year increment, totalling €10.94bn. Operating profit reached €1.33bn with sales of Yeezy inventory contributing €200m. Consequently, the operating margin widened by 4.4 percentage points to 5.6%. 

adidas’ earnings per share from continuing operations also mirrored this upward trend, shifting from a negative €0.67 in FY23 to €4.24 in FY24. 

In the final quarter of FY24, Adidas saw a currency-neutral revenue increase of 19%, with the adidas brand itself growing 18%.  

Wholesale revenues on a currency-neutral basis jumped by 25%, while DTC sales rose by 15%. E-commerce revenues also climbed 10%, with a strategic emphasis on full-price sales on the company’s digital platforms. 

During the fourth quarter, gross margin advanced 5.2 percentage points to reach 49.8%, primarily due to lower product and freight costs, an advantageous business mix and less discounting.  

The operating profit for the quarter amounted to €57m compared to an operating loss of €377m the previous year. 

adidas anticipates strong currency-neutral revenue growth across all markets in FY25. Sales for the brand are expected to rise at double-digit rates in North America, Greater China, emerging markets and Latin America, while Europe and Japan/South Korea are projected to see high-single-digit rate increases. 

adidas forecasts an operating profit between €1.7bn and €1.8bn for FY25, excluding any potential earnings or profits related to Yeezy. 

In December 2024, German law enforcement officials executed a search operation at adidas headquarters in Herzogenaurach in relation to a tax investigation.