adidas (ADS) Q4 2024 earnings summary

Executive summary

• Achieved strong brand revival and turnaround in 2024, leveraging major sports events, product innovation, and local market activations.

• Net sales up 12% currency-neutral to €23.7B, with double-digit growth in most regions and channels.

• Gross margin improved to 50.8%, driven by product mix, lower costs, and reduced discounting.

• Focused on expanding product franchises, partnerships, and localizing strategies.

• ESG progress included a 5.3% carbon intensity reduction, 99% recycled polyester sourced, and increased donations.

Financial highlights

• Net sales reached €23.7B, up 12% currency-neutral year-over-year; Adidas brand up 13%.

• Gross profit increased 18% to €12.0B; gross margin at 50.8% (+3.3pp).

• Operating profit (EBIT) at €1.34B, up 398–400% from prior year, with 5.6% operating margin.

• Net income from continuing operations was €824M, reversing a prior loss.

• Q4 saw 19% currency-neutral growth, with all markets except Japan and South Korea achieving double-digit growth.

Outlook and guidance

• FY 2025 guidance: EBIT of €1.7–1.8B, double-digit Adidas brand growth excluding Yeezy, and high-single-digit reported growth.

• Targeting 10% EBIT margin by 2026, with continued focus on cost control and margin improvement.

• Confident in further gross margin improvement in 2025, despite macroeconomic and geopolitical challenges.