Adidas Stock Rises on Preliminary Q4 Results

Adidas AG, the German sportswear giant, has announced preliminary results for the fourth quarter of 2024, and the news has sent its stock soaring. The company reported a 19% currency-neutral revenue growth in Q4, with revenues reaching €5.97 billion, up from €4.81 billion in the same quarter last year. Excluding Yeezy sales in both years, currency-neutral revenues increased by 18%.

The company's gross margin increased by 5.2 percentage points to 49.8% in Q4 2024, compared to 44.6% in Q4 2023. This improvement in gross margin suggests that Adidas has been successful in managing its costs and optimizing its pricing strategy. Additionally, Adidas' operating profit rebounded to €57 million in Q4 2024, compared to an operating loss of €377 million in Q4 2023. This turnaround in operating profit demonstrates the company's ability to improve its financial performance and generate profits.

Adidas CEO Bjørn Gulden attributed the strong performance to growing consumer and retailer interest in the brand's products across both lifestyle and performance categories. He also highlighted the company's consistent growth across all regions and divisions, indicating that Adidas' strategic initiatives were effective in various markets and product categories.