adidas (ADS) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 currency-neutral revenues rose 10% year-over-year; euro revenues up 7% to €6.438 billion.

• Excluding Yeezy sales, currency-neutral revenues increased 14% year-over-year.

• Gross margin improved by 2.0 percentage points to 51.3% in Q3.

• Operating profit reached €598 million, up from €409 million in Q3 2023, including €50 million from Yeezy inventory sales.

Financial highlights

• Q3 operating profit increased to €598 million, with a €50 million contribution from Yeezy sales.

• Gross margin rose to 51.3%, a 2.0 percentage point improvement year-over-year.

• Revenues in euro terms grew 7% to €6.438 billion compared to €5.999 billion in Q3 2023.

Outlook and guidance

• Full-year 2024 currency-neutral revenue growth now expected at around 10%, up from high-single-digit guidance.

• Operating profit guidance raised to around €1.2 billion for 2024, up from €1.0 billion.

• Assumes remaining Yeezy inventory will be sold at cost, adding €50 million in sales but no further profit in Q4.