S&P Global Ratings revised its outlook on Adidas AG’s debt ratings to stable from negative. The rating agency cited the company’s better-than-expected operating performance and its expectation that the brand’s growth momentum will continue.
S&P also affirmed its ’A-/A-2′ long- and short-term issuer credit ratings on Adidas.
S&P noted that Adidas’ AG achieved constant currency sales growth of approximately 10 percent year-over-year in the first half of 2024, driven by positive contributions from all regions except North America, which declined 6 percent. In addition, due to lower sourcing costs, a better mix and reduced promotional activities, the company improved its reported gross margin to 51 percent, an increase of 320 basis points.
Adidas further updated its full-year 2024 guidance and now expects to achieve 10 percent currency-neutral revenue growth (previously high single-digit growth) and reported operating profit of around € .2 billion (previously around €1 billion).
