Adidas has once again raised its full-year financial outlook for 2024, citing stronger-than-expected third-quarter performance and the enduring appeal of its classic retro sneakers, including the Samba and Gazelle lines. The German sportswear giant now projects a 10% increase in currency-neutral revenues, a boost from its previous high single-digit forecast. The company also expects profits to climb to €1.2 billion, up from the earlier estimate of €1 billion.
This marks the third time Adidas has raised its guidance this year, as the brand continues to recover from the fallout of its split with rapper Ye, which led to the abrupt end of its highly successful Yeezy line. Under CEO Bjorn Gulden, who took the helm in 2023, Adidas has effectively repositioned itself in the market, drawing on its heritage collections and tapping into growing demand for "terrace" style shoes like the Samba, originally popular as a soccer shoe in the 1970s.
Adidas reported third-quarter revenues of €6.438 billion, a 7% year-on-year increase and slightly ahead of analyst expectations of €6.416 billion. Excluding Yeezy sales, the company saw a 14% jump in sales compared to the same period in 2023, highlighting the strength of its core offerings.
While Adidas benefited from an initial rush in demand for leftover Yeezy stock earlier this year, the company noted that it had begun offering discounts on the remaining inventory. For the fourth quarter, Adidas expects no further profit contributions from Yeezy sales, though it anticipates around €50 million in revenue from clearing the final stock.
Adidas' strong performance contrasts with its main competitor, Nike, which recently reported a 10.4% decline in quarterly sales. The resurgence of Adidas' retro sneaker lines has allowed the company to gain market share in key categories, particularly as consumer demand for nostalgic styles remains high.
CEO Bjorn Gulden's strategy has helped the company regain its footing, with Adidas focusing on both brand heritage and performance products. The increased forecast suggests that the brand's momentum is likely to continue, even without the Yeezy boost that had once been a cornerstone of its success.
