Financial Data and Key Metrics Changes - The operating profit increased significantly to €336 million, up from €60 million a year ago, with the underlying adidas contribution around €290 million [3] - Gross margin improved from 44.8% in Q1 2023 to 51.2% in Q1 2024, a significant increase of 640 basis points, with the underlying margin without Yeezy at approximately 50.5% [12][38] - Cash improved from €778 million to over €1 billion, a 40% increase, with a target of €1.5 billion considered a good number for the balance sheet [16] Business Line Data and Key Metrics Changes - The split between wholesale and direct-to-consumer (D2C) sales is 62% and 38%, respectively, with retail stores accounting for 21% and e-commerce for 17% [7] - Lifestyle footwear is experiencing strong growth, particularly in the Terrace line, which includes successful products like Samba and Campus [29][34] - Apparel is expected to grow as excess inventory issues are resolved, with new lifestyle apparel launches planned for the U.S. market this summer [54] Market Data and Key Metrics Changes - North America saw a decline of 4%, but inventory levels decreased by 41% compared to the previous year, indicating a cleaner inventory situation [4] - Greater China reported an 8% growth, with expectations for double-digit growth by year-end despite a challenging economic environment [30][81] - Latin America experienced an 18% increase in sales, with inflation impacting the market dynamics [93] Company Strategy and Development Direction - The company is focused on maintaining a healthy inventory and gross margins while investing heavily in marketing to build momentum [5][39] - There is a strategic emphasis on local partnerships and adapting to market demands, with a shift towards more localized supply chains [58] - The company aims to achieve a 10% EBIT margin by 2026, with a focus on sustainable growth and quality over quantity [82][85] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the year, expecting a turnaround in North America and continued growth in other markets [4][19] - The company is cautious about the Yeezy inventory, with no assurance of complete sell-through, leading to conservative guidance [46] - The outlook for net sales growth has been revised from mid-single digits to mid- to high single digits, with EBIT expected to grow from around €500 million to €700 million [17][29] Other Important Information - The company is investing in new stores in various markets, including India and Ukraine, where business performance remains strong despite challenges [7] - The marketing budget is expected to remain around 12% of revenues, with no significant risk of increases due to competitive pressures [92] Q&A Session Summary Question: What is the expected revenue growth cadence for the remainder of the year? - Management indicated that if retail success continues, double-digit growth could be achieved in the second quarter, with certainty of double-digit growth in the second half [20][21] Question: How is the performance business doing compared to lifestyle? - The performance business is growing in high-end categories, but lifestyle is currently outpacing it in overall growth [22][74] Question: What are the plans for apparel moving forward? - The company is relaunching lifestyle apparel and expects to see growth in this segment as excess inventory issues are resolved [54] Question: How is the company managing its marketing budget in light of local competition? - The marketing budget is expected to remain stable at 12% of revenues, with no significant risk of increases despite competitive pressures [92] Question: What is the outlook for the Chinese market? - The company expects to continue growing in China, aiming for double-digit growth despite current economic uncertainties [81]

Key PointsAfter the market sold off on disappointing Fed announcements, some of the market's most valuable brands also became bargains.With double-digit upside ahead of them, according to analysts, investors need to add these to a watchlist soon. If the Fed does decide to cut rates in September, these names would make for a massive rally opportunity.5 stocks we like better than adidasMarkets were scared to wake up to the Federal Reserve (the Fed) pulling the rug. After pricing in the proposed interest rate ...

Adidas shoes are displayed at a DSW store on January 31, 2024 in Novato, California.Shares of Adidas jumped 6.3% on Wednesday after the company unexpectedly raised its full-year guidance and reported a year-on-year profit increase in the first quarter. The German sportswear company said that it now expects currency-neutral revenues to increase at a mid-to high-single-digit rate in full-year 2024, compared with a previous projection of growth near a mid-single-digit rate.Operating profit for the year is now ...

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

Adidas has barred German fans from customizing soccer jerseys with the number 44 after concerns that the figures resembled the World War II-era Nazi SS symbol.The German Football Association’s font used on the customizable jerseys on Adidas’ website makes the digit “44” look like the two lightning bolt-like designs featured in the flag of the Schutzstaffel, more commonly known as the SS — the major paramilitary organization under Adolf Hitler.German historian Michael König drew attention to the shirt’s dubi ...

ilbusca Overview My recommendation for adidas (OTCQX:ADDYY) is a buy rating, as I have gained a lot of confidence in the current management's ability to execute and deliver. Although regional performance on a headline basis seems poor, my view is that they are actually showing very strong signs of improvement that should start to be more apparent in the coming quarters. With growth recovering and a clear path to EBITDA margin expansion, valuation should continue to see support at 18.5x forward EBITDA. Note ...

Adidas posted its first annual loss in more than three decades on Wednesday, and warned that US sales will drop this year as the German sportswear giant continues selling off its remaining Yeezy inventory.For 2023, Adidas posted a $63.4 million net loss, its first since 1992, MSN earlier reported. In 2024, currency-neutral sales in North America are expected to decline to a mid-single-digit rate, around 5%, over “macroeconomic challenges and geopolitical tensions,” the company said in its earnings outlook.A ...

Adidas AG (OTCQX:ADDYY) shares fell sharply after the sportswear group reported its first annual loss since 1992. The German giant posted a full-year net loss of €58 million as revenues declined 5% to €21.4 billion, though were flat on a currency-neutral basis.  Loss of sales from the cancelled Yeezy partnership with Kanye West hit revenues. In the final quarter of 2023, footwear sales grew by 8% while apparel sales fell by 13%, leaving currency natural sales down 2%. However, Adidas expects an improvement ...

Adidas on Wednesday warned of a sales decline in its overstocked North American market in 2024, as the German sportswear brand continues to sell off its remaining Yeezy inventory.Currency-neutral sales in North America are expected to decline to a mid-single-digit rate in 2024, but are projected to notch mid-single-digit growth worldwide despite persistent "macroeconomic challenges and geopolitical tensions," the company said.Adidas confirmed its 2023 operating profit came in at 268 million euros ($292.9 mi ...

AI has become a buzzy topic recently across many industries, but it’s been used by sneakerheads for years in the form of “bots.” These bots help customers quickly purchase sought-after shoes that are released in limited quantities, often to resell them for a profit on the secondary market. They do this, in part, by enabling buyers to create multiple accounts and improve their chances of not only getting a pair of coveted shoes, but getting many pairs. See... Master your money. Subscribe to MarketWatch. ...