Adidas experienced a robust second quarter in 2024, with currency-neutral revenues increasing by 11 per cent year-over-year, reaching €5.822 billion. The company reported a 16 per cent growth in its underlying business, driven by positive consumer response to new product launches and effective marketing strategies. The sale of remaining Yeezy inventory contributed approximately €200 million, though this was a decline from €400 million in the previous year.

Footwear sales were a standout, rising by 17 per cent on a currency-neutral basis. Successful launches in Originals and Football, alongside increased demand in Running and Training, bolstered this growth. Apparel also saw improvement, with a 6 per cent increase, largely fueled by jersey sales from the UEFA Euro 2024 and Copa America victories for Spain and Argentina. Notably, demand for lifestyle products surged due to collaborations with popular partners, contributing to double-digit growth.

Sales surged in Europe, with a 19 per cent increase, while Emerging Markets and Latin America saw gains of 25 per cent and 33 per cent, respectively. North America, however, faced an 8 per cent decline, attributed to reduced Yeezy sales. Despite this, the direct-to-consumer channel performed well, with a 4 per cent overall increase; excluding Yeezy, it rose by 21 per cent.

Adidas reported an operating profit of €346 million, nearly doubling from €176 million in Q2 2023. This reflects an operating margin of 5.9 per cent. The company’s gross margin improved to 50.8 per cent, driven by better sell-throughs and a favorable product mix, despite ongoing currency challenges.

Adidas raised its full-year revenue guidance to a high-single-digit increase, anticipating an operating profit of around €1 billion. While acknowledging potential currency headwinds, the company remains optimistic about its ability to capitalize on brand momentum and continue its recovery trajectory.