adidas Are Reaching the Light at the End of the Yeezy Tunnel in 2024
Who would have thought that after cancelling their partnership, pulling product from shelves, re-instating product, pausing it again, then reinstating again, that would still be releasing in 2024? We sure didn’t, but despite this, the German sportswear brand are now reaching the end of the post-Yeezy tunnel. While their Q1 profits were undeniably boosted with a 50 million euro contribution from residual Yeezy product, the rest of the year is projected to grow without any profit contribution from said product.
In Q1 2024, adidas' revenue increased 8 per cent compared to the year prior, and their operating profit reached 336 million euro, which is a significant increase from the 60 million euro that was reported in last year's Q1 results. The recent Yeezy drops may have contributed to 14.8 per cent of these Q1 2024 profits; however, adidas have stated they will continue the year selling the remaining Yeezy inventory at cost, which means that there will be 'additional sales of around € 200 million and no further profit contribution'. Even without these Yeezy sales contributing to adidas' 2024 profit, they are still predicting currency-neutral, high-single-digit growth for the remainder of 2024, and they have also increased their full-year guidance, with the operating profit raised from the expected 500 million euro to approximately 700 million euro.
Looking on from Yeezy, adidas have identified strong growth in their terrace shoe market, including with the Samba, Gazelle, Spezial, and Campus. CEO Bjørn Gulden said, 'We still have a lot of work to do, but I feel very confident we are on the right track. We will bring adidas back again. Give us some time and we will again say – we got this!'
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