Citing current brand momentum and better-than-expected results in Q3 ended Sept. 30, Adidas increased its FY24 guidance for a second consecutive period. The German group is now forecasting about 10 percent currency-neutral sales this fiscal year, up from a prior outlook of a high-single-digit rate and €1.2 billion in operating profit. Previously, the company had predicted approximately €1 billion in annual operating profit.
Adidas, scheduled to report Q3 results on Oct. 29 formally, says currency-neutral revenues for the three months rose by 10 percent year-over-year and by 7 percent in euros to €6,438 million. Excluding sales of Yeezy products, currency-neutral revenues increased by 14 percent. Along with the sales improvement, the group said its year-over-year gross margin increased by 200 basis points to 51.3 percent, and its operating profit soared by 46 percent to €598 million from €409 million. The profit total includes an approximate €50 million contribution from selling some remaining Yeezy inventory.
Adidas raised its FY forecast after better-than-expected Q2 which now looked like a good plan.
The company’s preliminary results announcement marked the second consecutive period of raised financial guidance ahead of formal quarterly results. In mid-July, Adidas said its Q2 preliminary results included 9 percent revenue growth to €5,822 million and 97 percent year-over-year improvement in operating profit to €346 million for the period ended June 30.
