The company will enhance its product range, local consumer focus, and retailer partnerships, alongside impactful marketing. Despite increased marketing and sales investments, operating efficiencies and gross margin expansion are expected to drive significant bottom-line improvements, with operating profit projected between €1.7 billion and €1.8 billion. Following the completion of the Yeezy inventory sale in 2024, the 2025 outlook excludes Yeezy-related revenues and profits.
Adidas achieved strong double-digit growth in FY24, with currency-neutral sales up 12 per cent and a 17 per cent increase in footwear.
The gross margin rose to 50.8 per cent, while operating profit surged to €1.4 billion.
Q4 saw 19 per cent revenue growth, led by Lifestyle and Performance gains.
In 2025, Adidas expects high-single-digit sales growth, driven by product innovation and market expansion.
“We feel good about the future, and we see potential to increase our market share in all markets. I think for 2025 we are in very good shape. I am confident we have the product pipeline and marketing plans to continue to drive brand heat globally,” said Bjørn Gulden, chief executive officer, Adidas. “Of course there is a lot of macroeconomic uncertainty right now, but with products that we think are on trend and the attitude of being agile and more local, I cannot see why we should not be successful. That’s why I think we will again grow at least 10 per cent with the Adidas brand in 2025.”
Meanwhile, the company saw strong revenue growth in fiscal 2024 (FY24), with currency-neutral sales up 12 per cent, surpassing initial mid-single-digit forecast and the October guidance of around 10 per cent growth. The Adidas brand grew 13 per cent, driving this momentum. The company also completed the sale of remaining Yeezy inventory, generating €650 million in revenue. In euro terms, total revenue rose 11 per cent year-over-year (YoY) to €23,683 million.
The company maintained healthy inventories at €5.0 billion, supporting the Adidas brand’s double-digit growth outlook. In line with its positive results, the executive and supervisory boards proposed a dividend increase to €2.00 per share, Adidas said in a press release.
Despite adverse currency effects, the gross margin improved by 3.3 percentage points to 50.8 per cent. Operating profit surged by over €1 billion to €1.4 billion, while net income from continuing operations reached €824 million.
Adidas’ footwear segment grew 17 per cent in FY24, driven by strong double-digit gains in originals, football, and training, alongside expansion across various price points. Sportswear, running, and performance basketball also contributed to this momentum.
Apparel sales rose 6 per cent, boosted by differentiated ranges, increasing demand for originals collections like Adicolor and Firebird, and the success of retro-inspired football jerseys. Sportswear collections, including ZNE, saw strong sell-throughs, driving growth towards year-end. Accessories sales increased 2 per cent, with notable improvements in the second half, while locally relevant product assortments resonated well across global markets.
In the fourth quarter (Q4) of FY24, Adidas reported currency-neutral revenue growth of 19 per cent, driven by double-digit gains across Europe, North America, Greater China, Emerging Markets, and Latin America. The gross margin improved by 5.2 percentage points to 49.8 per cent, benefitting from lower product and freight costs, a more favourable business mix, and reduced discounting. The company also achieved an operating profit of €57 million, a significant turnaround from the €377 million loss in the prior year.
Strong double-digit growth in Lifestyle and Performance segments
In Q4, lifestyle segment revenues saw strong double-digit increases, supported by the expansion of the Terrace range, Campus franchise, and SL72 model. The company also incubated Tokyo and Japan franchises using a market-by-market approach. Design innovation advanced with the launch of Climacool, a fully 3D-printed shoe, while Megaride and Aruku expanded Adidas’ modern silhouettes portfolio. In Sportswear, double-digit growth was driven by successful footwear franchises and the revamped Adidas Essentials apparel range, featuring Lionel Messi and Antonela Roccuzzo in activations. Collaborations with Stella McCartney, Sporty & Rich, Bape, and Korn further boosted demand for lifestyle offerings.
Performance segment also delivered double-digit revenue growth, with football increasing visibility for Predator and F50 franchises, introducing new packs and the F50 Two Horizons, which honours Arabic players’ contributions to football. The lifestyle expansion of major European football clubs included apparel featuring the Trefoil logo. In Running, Adidas leveraged its Adizero record-breaking series for everyday runners, launching Supernova Rise and seeding the Evo SL ahead of its commercial debut, the release added.
“I am very pleased the way the fourth quarter and the full year developed for us at Adidas. We grew double digits in 2024 and improved our operating profit. This development was much better than we had expected, and we are of course very pleased with this,” said Gulden. “Although we are not yet where we want to be long term, it was a very successful year that confirmed the strength of the Adidas brand, the potential of our company and what a fantastic job our teams are doing. We still have a lot to improve but I am very proud of what our people achieved in 2024.”
Fibre2Fashion News Desk (SG)
