Adidas has revised its annual profit forecast upward, reflecting a robust performance driven by its popular Samba and Gazelle trainers.
- The company experienced a notable 46% surge in operating profits, amounting to £500 million, partially due to sales of remaining Yeezy inventories.
- Adidas’s total sales increased by 7%, propelled by the strong demand for Samba and Gazelle models.
- The brand now expects an annual operating profit of £1 billion, higher than its earlier estimate of £837 million.
- Currency-neutral sales are projected to increase by approximately 10%, exceeding previous expectations.
Adidas has made a strategic upward revision to its annual profit forecast, indicative of its strong market position bolstered by the increasing popularity of its Samba and Gazelle shoes. This marks the third time in the year that the company’s guidance has been adjusted upwards, aligning with the momentum gained during a particularly strong third quarter.
The sporting giant reported a significant 46% rise in operating profit, reaching £500 million from a previous £342 million. This includes a contribution of £41.8 million from the sales of its remaining Yeezy inventory, following its previous association with rapper Ye, formerly known as Kanye West. Although sales of Yeezy products provided a financial benefit this quarter, no additional profit contributions are expected in the following quarter from these inventories.
Sales figures for Adidas ascended by 7%, culminating in £5.39 billion. This growth is largely attributed to the success of its Samba and Gazelle trainers, which have seen increased consumer demand. Consequently, Adidas has adjusted its full-year forecast, now anticipating a substantial operating profit of £1 billion, surpassing previous projections of £837 million.
Looking ahead, the company has enhanced its currency-neutral sales projection, predicting a 10% increase. This adjustment reflects better-than-expected performance and a positive outlook for the brand’s future, driven by current market dynamics and consumer preferences.
The turnaround strategy being implemented by CEO Bjørn Gulden is starting to show promising results for Adidas, as the company navigates challenges such as remaining inventory from prior collaborations.
Adidas’s strategic adjustments and strong market demand set the stage for potentially record-breaking profits for the year.
