Core Insights - adidas AG (ADDYY) reported strong preliminary results for Q4 2024, with currency-neutral revenues increasing by 19% and 24% in euro terms [1] - The company achieved a gross margin of 49.8%, up 5.2 percentage points, and an operating profit of €57 million [1] - For the full year 2024, revenues on a currency-neutral basis rose by 12%, with a gross margin of 50.8% and operating profit exceeding €1 billion, reaching €1,337 million [2] Group 1: Financial Performance - In Q4 2024, excluding Yeezy, revenues on a currency-neutral basis increased by 18% year over year [1] - The gross margin for 2024 improved by 3.3 percentage points compared to the previous year [2] - The operating profit for 2024 saw a significant increase of more than €1 billion compared to the previous year [2] Group 2: Management Outlook - Management expressed satisfaction with the progress made in Q4 and throughout 2024, highlighting robust growth across all regions and divisions [3] - The company remains optimistic about future growth, aiming for double-digit growth with the adidas brand and a 10% margin target [4] - Final financial results for 2024 and the outlook for 2025 are expected to be released on March 5, 2025 [4] Group 3: Market Position and Strategy - adidas has maintained a strong presence in the U.S. sports apparel market, driven by its brand image and strategic growth efforts [5] - The direct-to-consumer (DTC) business has performed well, with retail stores benefiting from strong sell-out rates [6] - The company is focusing on reducing discounting activities while enhancing its online business mix, supported by innovation efforts [6] Group 4: Stock Performance - Shares of adidas have increased by 26.4%, outperforming the industry average decline of 2.6% [6]
Adidas Issues Preliminary Results for Q4, Records 19% Revenue Growth