After strong Christmas business, the sporting goods manufacturer Adidas was able to surprisingly increase its profit in 2024: by more than one billion euros. This is also due to its retro models.
A brilliant Christmas business and the sale of retro models such as “Samba” and “Gazelle” are inspiring Adidas. The second largest sporting goods company in the world has exceeded its own expectations for 2024, which had already been raised three times. The operating result improved to 1.34 billion euros – i.e. by more than a billion euros, Adidas announced. In the previous year the company achieved 268 million euros.
CEO Björn Gulden recently forecast an operating profit of 1.2 billion euros. “Although we are not yet where we want to be in the long term, I am very happy with this development, which was much better than expected,” he said. Sales grew by eleven percent to 23.7 billion euros, also stronger than expected. From October to December alone, sales rose by 24 percent to almost six billion euros – at least 19 percent more when adjusted for currency effects. This resulted in an unexpected operating profit of 57 million euros.
Adidas wants to get closer to its margin target of ten percent
Gulden promises even more for 2025. Adidas could then increase again by more than ten percent. “We want to use this growth to further improve our operating results and get even closer to our margin target of ten percent,” said Gulden. He has set this goal for 2026. In the past year, the operational return on sales was calculated at just under 5.7 percent.
Stifel analyst Cedric Lescable believes 8.1 percent is possible for the new year: “Management is even more confident than in October.” The company plans to present the detailed figures and forecast for 2025 on March 5th.
Shares at their highest level in more than three years
The optimism also made Adidas shares one of the biggest winners in the German leading index DAX today, with a temporary increase of 6.5 percent. It is higher than it has been in more than three years.
Under Gulden, Adidas has focused on sports and retailers that felt neglected under his predecessor, Kasper Rorsted. “We see potential to increase our market share in all markets,” said Gulden. “I am very satisfied with how the fourth quarter and the year as a whole developed for Adidas,” said Gulden – especially since the Christmas business was generally difficult in retail.
