Adidas has reported a substantial increase in its operating profit for the first half of 2024, reflecting strong financial performance.
- The company’s operating profit reached €682m, marking a 189% rise from the previous year, driven by successful marketing and sales strategies.
- Revenues climbed 6% to €11.3bn, bolstered by robust sales growth in Europe and Latin America, aligning with major football events.
- Adidas adjusted its profit guidance upwards twice in 2024, now projecting a full-year operating profit of €1bn.
- Controversy emerged over a marketing decision linked to the SL72 trainer campaign, leading to public backlash and apologies.
Adidas has reported an impressive surge in its operating profit for the initial six months of 2024. The German sportswear leader achieved a profit of €682m (£575m), which translates to a 189% increase compared to the same period in 2023. This financial success has been attributed to effective marketing strategies and robust sales.
Adidas experienced a 6% rise in its half-year revenues, totalling €11.3bn (£9.5bn) year on year. This growth was significantly driven by double-digit sales advancements in Europe, with a 19% increase, and in Latin America, with a notable 33% jump. Both regions hosted major football tournaments, namely the Euros and Copa, where Adidas had a strong presence, sponsoring multiple national teams, including the victorious teams of Spain and Argentina.
Consequently, Adidas adjusted its full-year operating profit expectations for the second time in 2024, revising its forecast from €500m (£421m) to an ambitious €1bn (£840m). CEO Bjørn Gulden expressed optimism about continuing the positive momentum, particularly with the upcoming Paris Olympics attracting significant attention from fans.
However, the period was not without challenges. Adidas faced criticism concerning its SL72 running trainer campaign, originally tied to the 1972 Munich Olympics. The backlash centred around the casting and subsequent removal of model Bella Hadid, leading to discontent among consumer bases and Jewish civil rights groups. Hadid, who has Palestinian heritage, criticised the campaign’s insensitivity, resulting in an official apology from Adidas over any distress caused.
Such developments highlight both the promising financial trajectory and the delicate balance Adidas must maintain in its marketing efforts.
Adidas’s financial achievements highlight its strategic prowess, amid challenges requiring sensitive navigation.
