An Adidas flag shop on the pedestrian road on Nanjing Street in Shanghai, China.
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Adidas On Wednesday, there was an increase in the fourth quarter sales that exceeded the expectations, as the retailer sold the latest share of his remaining Yeezy shares, but told about slow income growth next year.
The German sports giant recorded a 19% increase in revenue with neutral currency rates to 5.97 billion euros ($ 6.34 billion) in the three-month period, ahead of 5.72 billion euros by LSEG analysts.
Operational profit entered 57m euros in the fourth quarter compared to a loss of 377 million euros in the same period last year.
The shares decreased 2.6% immediately after the market was opened Wednesday.
Full -year sales increased 12% with neutral currency rates to 23.7 billion euros, against one 23.5 billion euros provided. Operational profit reached 1.34 billion euros in 2024, compared to the forecast of 1.27 billion euros.
The figures came forward with the company’s own instructions, set up in October, to increase full revenue of about 10% with neutral currency rates and operating profit of about 1.2 billion euros.
Ceo Bjorn Gulden described Wednesday’s results as “much better than we had expected.”
“Although we are not yet where we want to be long -term, it was a very successful year that confirmed the strength of the Adidas brand, the potential of our company and what fantastic work our teams are doing. We still have a lot to improve, but I am very proud of what our people arrived in 2024,” he said in a statement.
Describing its forecasts for 2025, the company said it expects neutral currency sales to increase at a high-digit rate and operating profit to increase between 1.7 billion euros and 1.8 billion euros.
“For 2025 we are in very good condition,” Gulden said. “Of course there is a lot of macroeconomic uncertainty now, but with products we think are trending and the attitude of being agile and more local, I can’t see why we should not be successful.”
Adidas is trying to grow its market share in North America between the fall of sales in Nike and a wider retailer away from excessive dependence on a weaker China.
North America’s Adidas’ sales fell 1.6% to neutral currency rates in 2024, after trying to recover from the end of its once-expressed lines of Yeezy athletes. The sportswear giant was forced to ax the Yeezy line after completing his partnership with YE, the rapper previously known as Kanye West, over a series of anti -Semitic remarks the rapper made in 2022.
The company on Wednesday said she had sold the remainder of her Yeezy inventory in the fourth quarter.
Gulden has been looking for Adidas’s distance from its loss line Yeezy and cause a wider brand turn since taking over January 2023.
Yanmei Tang, an analyst on the third bridge, highlighted the Yeezy brand phase and the lack of important sports events such as head for next year. She also noted that she showed the need for further innovation beyond her well -known Samba and Gazelle sneakers to promote her growth goals.
“While Adidas has managed to recover the attraction in the lifestyle shoes, especially with its terrace line (Samba, Gazelle, and Spese), the peak of this trend may have already passed into major markets like Europe,” Tang wrote on Tuesday.
“The brand is now shifting concentration to newer silhouettes such as SL 72 and the potential resurrection of the superstar, but these are unlikely to fully compensate the expected slowdown of the terrace trend,” she said.
Adidas has been gaining ground against the great Nike rival during the last quarters, with the former market share that rose to 8.9% in 2024 against the latter, according to Globaldata quoted by Reuters. However, the emergence of newer brands including On, Hoka and New Balance has brought increased competition to the global sports clothing market with each part of Clawing over the past year.