The German sportswear brand adidas has exceeded expectations with its performance in the third quarter of 2024, reporting a 10% increase in currency-neutral revenue as compared to the previous year. In euro terms, the company’s revenues rose by 7%, reaching 6.438 billion euros, up from 5.999 billion euros in 2023. Excluding sales of Yeezy products in both years, adidas experienced a 14% increase in currency-neutral revenue.

The gross margin also improved by two percentage points to 51.3%, compared to 49.3% in the same period last year. The company’s third quarter operating profit increased significantly to 598 million euros from 409 million euros in the third quarter of 2023. A partial sale of the Yezzy inventory contributed 50 million euros to the operating profit.

Thanks to the strong quarterly results, adidas has once more raised its guidance for 2024. The company now expects currency-neutral revenue to grow by around 10%, revising its previous forecast of high-single-digit growth. The operating profit estimate also increased to approximately 1.2 billion euros (previously: 1.0 billion euros).

The remaining Yezzy inventory is expected to be sold at cost during the fourth quarter, contributing around 50 million euros of incremental sales. However, no further profit is expected from this stock.