Adidas has reported that its preliminary 2024 fourth-quarter currency-neutral revenues increased 19 percent year-over-year (y/y). In euro terms, Adidas’ revenue grew 24 percent to €5.97 billion in Q4 from €4.81 billion in Q4 2023.

Fourth-quarter currency-neutral revenues increased 18 percent year-over-year by excluding Yeezy sales in both years.

The company’s fourth-quarter gross margin increased 520 basis points to 49.8 percent of revenues, compared to 44.6 percent in Q4 2023. Operating profit reportedly reached €57 million in the quarter on a preliminary basis, compared to a €377 million operating loss in Q4 2023.

The company’s preliminary currency-neutral revenues were up 12 percent y/y for the full year. In euro terms, revenues increased 11 percent to €23.7 billion in 2024, compared to €21.4 billion in full-year 2023. Excluding Yeezy sales in both years, currency-neutral revenues increased 13 percent.

The company’s gross margin improved by 330 basis points to 50.8 percent of revenue in 2024, compared to 47.5 percent in 2023. Full-year operating profit increased over €1 billion to €1.34 billion, compared to €268 million in 2023.

“I am very pleased with how the fourth quarter and the full year developed for us at Adidas,” said company CEO Bjørn Gulden in a media release. “Nineteen percent currency-neutral growth (+24 percent reported) in a quarter that in general was difficult for the trade underlines the strong momentum we currently see for our brand and our products.

“We clearly see that consumers’ and retailers’ interest in our products is growing across both Lifestyle and Performance. Strong growth across all regions and divisions proves the good job our teams are doing across regions and functions,” continued Gulden. “We still have a lot to improve, but I am very proud of what our teams and people have achieved in 2024,” Gulden added.

“We also feel good about the future, and we see potential to increase our market share in all markets, the CEO concluded. “There is a lot of macroeconomic uncertainty right now, but we clearly have the goal to again grow double-digit with the Adidas brand and use that growth to continue to improve our operating profit and make further progress towards our 10 percent margin target.”

Image courtesy Adidas