Herzogenaurach: Shares of Adidas saw a significant increase on Wednesday, climbing 4.42 percent, after the company announced an upward revision of its full-year 2024 earnings forecast. This adjustment follows unexpectedly strong preliminary results for the second quarter.
As per reports, the German sportswear giant revealed late tuesday that it now anticipates an operating profit of approximately 1 billion euros for 2024, a notable increase from the previously projected 700 million euros.
Adidas reported an 11 percent year-over-year revenue growth for the second quarter. When excluding sales from the troubled Yeezy line in both years and accounting for currency-neutral revenue, the growth was even more impressive at 16 percent. Earlier this year, Adidas decided not to write off most of its unsold Yeezy inventory but instead opted to sell the remaining stock.
The Yeezy line, developed in collaboration with rapper Ye (formerly Kanye West), faced setbacks after Adidas severed ties with him following his anti-Semitic remarks. Adidas stated that the expected revenue from the sale of the remaining Yeezy inventory for the rest of the year would be around 150 million euros, without any additional profit contribution, as these sales are assumed to occur at cost.
Notably, in the second quarter, Adidas' operating profit surged to 346 million euros, significantly higher than the 176 million euros reported in the same period last year.
This latest earnings forecast update follows an earlier revision this year after the company’s first-quarter results surpassed expectations. In April, Adidas announced an operating profit of 336 million euros for the first three months of 2024, a substantial increase from the 60 million euros reported in the first quarter of the previous year.
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