Adidas Targets High Single-Digit Growth in 2025, Building on Strong 2024 Performance

Adidas, the global sportswear giant, is poised for continued growth in 2025, with the company targeting a high single-digit increase in currency-neutral revenues. This optimistic outlook follows a strong 2024 performance, marked by double-digit revenue growth and significant improvements in gross margin and operating profit. Adidas' CEO, Bjørn Gulden, expressed confidence in the brand's momentum and potential for further market share gains in key regions.

Adidas' 2024 results were driven by a broad-based increase in footwear sales, with double-digit growth in Originals, Football, Training, Sportswear, Running, and Performance Basketball. The company's ability to innovate and meet consumer needs across various price points contributed to this success. In 2025, Adidas expects to continue this trend with a high-single-digit increase in currency-neutral revenues, reflecting continued double-digit growth for the adidas brand (Gulden, 2025).

Adidas' gross margin improved by 3.3 percentage points to 50.8% in 2024, despite significant negative currency effects. This improvement was driven by lower product and freight costs, a more favorable business mix, and reduced discounting. In Q4 2024, the gross margin improved by 5.2 percentage points to 49.8%. Adidas expects to maintain this trend in 2025, with an operating profit increase to a level of between €1.7 billion and €1.8 billion (Gulden, 2025).

Adidas' strong performance in 2024 was also driven by an increase in market share across all markets. The company grew double digits in Europe, North America, Greater China, Emerging Markets, and Latin America. This growth was achieved by going into the market with products relevant to local consumers, demonstrating the company's agile and local approach. Adidas expects to continue increasing market share in 2025, with a goal to grow at least 10% with the adidas brand (Gulden, 2025).

Adidas' strategic focus on sustainability and local consumer relevance has significantly contributed to its growth potential in key markets like North America, Europe, and Greater China. By addressing the growing demand for sustainable products and catering to the diverse needs of local consumers, Adidas has been able to maintain a strong competitive position and achieve significant growth in these markets.

In conclusion, Adidas' strong performance in 2024 and its optimistic outlook for 2025 reflect the company's ability to innovate, adapt to market demands, and execute strategic initiatives. With a focus on sustainability, local consumer relevance, and strategic partnerships, Adidas is well-positioned to continue driving brand heat and market share in key regions.