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German sportswear giant Adidas has reported exceptional fourth-quarter profits, driving shares up by 7 per cent following strong festive period sales. The company’s remarkable turnaround, particularly in its classic trainer lines, has demonstrated the brand’s resilience in the global sportswear market.
The Herzogenaurach-based company posted an operating profit of €57 million in the final quarter of 2024, marking a significant improvement from the €377 million loss recorded in the same period of 2023. This robust performance was underpinned by substantial demand across both fashion and sports performance footwear divisions.
Under the strategic leadership of Chief Executive Bjørn Gulden, who joined from rival Puma in early 2023, Adidas has successfully navigated past the challenges posed by the termination of its Yeezy partnership. The company’s classic models, particularly the Samba and Gazelle trainers, have experienced such overwhelming demand that product launches were strategically delayed to maintain brand exclusivity.
The preliminary figures reveal an impressive 12 per cent increase in annual revenue, reaching €23.7 billion, with non-Yeezy sales climbing 13 per cent year-on-year. Operating profits surged by more than €1 billion to reach €1.3 billion, slightly exceeding the company’s previous guidance.
Gulden’s strategic shift away from direct-to-consumer sales towards enhanced retail partnerships has proved successful, with the company revising its full-year guidance upward several times throughout 2023. The CEO’s optimistic outlook includes aspirations for continued double-digit growth and progress towards a 10 per cent margin target.
The company’s share price has demonstrated remarkable momentum, rising approximately 56 per cent over the past year and outperforming its primary American competitor, Nike. Adidas is scheduled to release its final results and 2025 financial guidance on 5 March.
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