The adidas 2024 Financial Report Brings Growth, Yeezy Finality and 500 Jobs Cut
The final financial report for the 2024 year has arrived from adidas Headquarters, and it confirms everything known from the preliminary results along with the absolute word on remaining Yeezy product.
The Three Stripes continue to exceed expectations for revenue growth post-Yeezy, with a 12 per cent increase seen between 2023 and 2024. This brings them up to €23.68 billion, about $25.56 billion in USD, and there was also an improvement in their operating profit by just over €300 million. Footwear championed the growth, with an increase of 17 per cent compared to last year. In terms of region, adidas experienced growth in all except for in North America where the lack of Yeezy and a 'conservative sell-in approach' led them to a 2 per cent decline.
Speaking of Yeezy, the report confirmed time and time again that Ye's brand is completely wrapped up for adidas, with all remaining inventory having sold in Q4 of 2024. The outlook for 2025 does not include Yeezy revenues or profits, so that's that!
When the preliminary results released, there was unconfirmed word that 500 jobs were set to be cut from the Herzogenauarch HQ. Bjørn has confirmed this, stating in the earnings call that it was to reduce the complexity of the business and operations: 'We worked with different departments and different processes [to identify] how we can reduce complexity and be more right in what we’re doing in a more simple way. And these work streams identified that most of the complexities are actually being created in headquarters. And we did then define that we have up to 500 roles here in the headquarter that are obsolete.'
Overall, it's been a positive 2024 for the Three Stripes and it's only up from here in their post-Yeezy era (it's for real this time).
Financials results for the 2024 year are starting to trickle in, including PUMA’ s preliminary report and New Balance’s revenue announcement. Among these was the prelim report for German sportswear behemoth adidas. In it, they listed better than expected results for the fourth quarter with a 19 per cent increase from the same period last year to hit a total of €5.95 billion. This follows a particularly successful year, especially considering the economic challenges they faced after the loss of the Yeezy partnership. As for the full year, revenue was up 12 per cent in currency-neutral terms, rounding out the twelve months at €23.68 billion.
Despite the consistent and positive growth they have witnessed this year, it has been revealed that adidas will be looking to cut up to 500 jobs from their headquarters in Germany. Representatives who reached out to Footwear News reported that these cuts were not an attempt to cut costs, but will instead look at ‘reducing complexity and ensure sustainable success in the future’. This aligns with CEO Bjørn Gulden’s overall strategy to spread the business’s core operations across multiple places in global markets rather than have it centralised in the Herzogenauarch HQ.
The formal report is not due until March, so stay locked to get the full breakdown when they release. In the meantime, check out PUMA’s preliminary 2024 results.