adidas reported a 10% increase in currency-neutral revenue in the first nine months of 2024, reaching 17.72 billion euros, on a comparable basis to the same period last year. The company attributed the growth to strong performances across its core business segments. However, currency fluctuations negatively impacted overall revenue growth compared to the same period in 2023.

The company’s gross margin improved significantly, climbing to 51.1% from 48.4% in the same months of the previous year, mainly due to lower freight and product costs, a favourable business mix, and reduced discounting. Operating profit more than doubled to 1.28 billion euros, with the sale of Yeezy stock contributing 150 million euros. Net income from continuing operations surged to 851 million euros.

Operating expenses grew by 6% year-over-year to 2.09 billion euros, driven by increased marketing and point-of-sale investments. Despite these higher costs, operating expenses as a percentage of sales declined slightly, reflecting efficient expense management. The company's strong cash flow allowed for a reduction in adjusted net borrowings by 1 billion euros, bringing total debt to 4.21 billion euros as of September 2024.

adidas reduced its inventories by 7% against the prior year to 4.52 billion euros, streamlining its operations and supporting future revenue growth. Operating working capital decreased by 12%, on a comparable basis to 4.89 billion euros, supported by higher payables and disciplined inventory management. These efforts have positioned the company for sustained double-digit top-line growth.

2024 Outlook Update

Looking ahead, adidas raised its full year guidance for 2024. The company now expects currency-neutral revenues to grow by approximately 10%, up from its previous high-single-digit growth forecast. Operating profit is projected to reach 1.2 billion euros, an improvement from earlier estimates of 1.0 billion euros.