adidas (ADS) Q4 2024 earnings summary

Executive summary

• Achieved EUR 23.7 billion in net sales for 2024, representing 12% currency-neutral growth and 13% for the core brand, with strong double-digit growth in Q4 across most regions.

• Gross margin improved by 3.3pp to 50.8%, reflecting lower discounting, better product mix, and fading FX headwinds.

• Operating profit (EBIT) reached EUR 1,337 million, up 400% year-over-year, with net income at EUR 824 million.

• Major sports events, strong product momentum (Samba, Gazelle, Superstar), and local market activations contributed to growth.

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

Financial highlights

• Wholesale grew 14%, own retail up 15%, and e-commerce up 6% (18% excluding Yeezy), with concept stores up over 20% like-for-like.

• All regions except Japan and South Korea saw double-digit Q4 growth; North America returned to double-digit growth in Q4.

• LATAM up 28%, Europe up 19-20%, Greater China up 10%, and emerging markets up nearly 20%.

• Footwear led with 17% growth, apparel up 6%, and accessories up 2%.

• EUR 200 million in one-time costs and EUR 200 million Yeezy profit included in 2024 results; both will not repeat in 2025.

Outlook and guidance

• 2025 guidance: EBIT of EUR 1.7–1.8 billion, double-digit growth for the Adidas brand excluding Yeezy, high single-digit growth including Yeezy base.

• Targeting 10% EBIT margin by 2026, with a focus on linear progress in SG&A leverage and gross margin improvement.

• Confident in further gross margin expansion in 2025, with positive order books across all markets and categories.