By
Bloomberg
Published
October 29, 2024
Adidas AG reported strong third-quarter growth across most regions in a sign a revival plan led by Chief Executive Officer Bjorn Gulden is starting to work.
The German sportswear group said Tuesday that revenue grew by double digits in most places, except North America, where dwindling sales of Yeezy sneakers are still weighing on the region. Operating profit also jumped to €598 million ($646 million), from €409 million at the same time last year.
Earlier this month, Adidas raised its annual profit target for the third time, amid surging demand for its retro kicks. Adidas now expects to generate operating profit of around €1.2 billion, up from the previous forecast of around €1 billion.
Gulden took over Adidas in January 2023, shortly after the company canceled its partnership with rapper and designer Ye. Gulden’s bet on boosting popular retro products like Samba and Gazelle shoes paid off, with Adidas shares outperforming cross-town rival Puma SE. The goal is to close the gap to Nike, which remains the industry leader despite its struggles.
Adidas shares have risen 16% so far this year while shares in Nike and Puma both posted losses.
All regions, sales channels and product divisions are now growing, Gulden said in a statement. Even in North America, where sales fell 7%, the region returned to positive growth when the Yeezy brand is excluded, he said.
Adidas continues to sell its Yeezy inventory, with the brand contributing around €50 million in operating profit during the third quarter. There will be no further profit contribution in the fourth quarter, it has said.
