adidas Continue Their Upwards Trajectory With Q3 2024 Results
After earlier in the year, have released their preliminary results and report that Q3 experienced a 10 per cent increase in currency-neutral revenues compared to the same period last year. Without considering in both those years, this growth rate climbs to 14 per cent, confirming their sales are doing just fine without the rapper’s signature designs. While the of course cost them dearly, the renaissance of terrace styles, and in particular the dominance of the and , have thoroughly filled that hole.
These are only the preliminary results, so a detailed breakdown of their financial position will follow in the coming weeks, but for now they are confident enough in their results that they have increased the full-year guidance from high single-digit growth to around 10 per cent. This reflects the growth seen in the first half of the year, which was up 10 per cent as well, meaning the second half of the year is continuing as strongly as it started, if not stronger.
One of the more interesting aspects to come out of the is the possibility that 2024 will be the final year to purchase Yeezy product retail from adidas. The report reads, ‘the company assumes the sale of the remaining Yeezy inventory during the remainder of the year to occur on average at cost. This would result in additional sales of around €50 million and no further profit contribution in the fourth quarter’. In Q3 2023, Yeezy product brought in approximately €350 million in revenue and €150 million in operating profit, whereas this year’s Q3 has brought in €150 million in revenue and €38 million in operating profit. With just an estimated €50 million in revenue left in Yeezy product, it begs the question: are adidas washing their hands of Yeezy once and for all?