Adidas has made an impressive comeback in 2024, with solid figures for both the fourth quarter and the whole year. Thanks to the popularity of the Samba and Gazelle models, combined with the sale of remaining Yeezy stocks, the German brand managed to exceed expectations.
Surfing the retro vibe
Fourth-quarter sales rose 24 % to just under six billion euros, well ahead of the 5.3 billion expected by analysts. Operating profit also surprised positively: after a loss of 377 million euros in the same quarter of 2023, Adidas is now making a profit of 57 million euros. For 2024 as a whole, sales rose 11 % to almost 23.7 billion euros, while operating profit more than quintupled to 1.3 billion euros. Gross margin improved by 3.3 percentage points to 50.8%.
CEO Bjørn Gulden is delighted with these results: “Although we are not yet where we want to be long term, I am very happy with this development which was much better than we had expected. We clearly see that consumers’ and retailers’ interest in our products is growing across both Lifestyle and Performance.” The popularity of retro trainers such as the Samba and Gazelle was at the heart of Adidas’ 2024 strategy. As a result, the brand has managed to gain market share, thanks in part to the weaker performance of rival Nike.
Kanye continues to score
The turnaround follows a difficult 2023, during which Adidas suffered the break-up of its collaboration with rapper Ye (Kanye West). This break-up, triggered by racist comments made by the artist, resulted in a large stock of unsold Yeezy trainers. Last year, however, Adidas had managed to sell off much of the remaining stock.
Despite the macroeconomic uncertainties, Adidas remains optimistic about the future. The brand is targeting further growth in profits and an improvement in operating margin to 10 %. The final annual figures and outlook for 2025 will be published on 5 March.
