Adidas announced preliminary Q2 2024 results, reporting an 11 per cent increase in currency-neutral revenues compared to the previous year. In euros, revenues grew 9 per cent to €5.822 billion, up from €5.343 billion in 2023. Excluding Yeezy sales, currency-neutral revenues rose 16 per cent for the quarter.
The gross margin for Q2 was 50.8 per cent, slightly down from 50.9 per cent in 2023. The core Adidas gross margin saw strong improvement due to better sell-through rates, reduced discounting, lower sourcing costs, and a favorable category mix. However, the reduced Yeezy business negatively impacted year-over-year comparisons. Operating profit for Q2 increased to €346 million from €176 million in 2023, bolstered by a €50 million contribution from Yeezy inventory sales.
Adidas raised its full-year guidance following the strong quarterly performance and positive momentum. The company now expects high-single-digit growth in currency-neutral revenues for 2024, up from the previous mid- to high-single-digit estimate. Operating profit is projected to reach around €1 billion, an increase from the prior forecast of €700 million.
The guidance assumes that remaining Yeezy inventory will be sold at cost, contributing approximately €150 million in additional sales without further profit impact. Despite this, Adidas expects significant unfavorable currency effects to continue weighing on profitability and gross margin development throughout the year.
