Adidas seals turnaround yr with sturdy fourth-quarter gross sales

LONDON (Reuters) -Adidas reported what it mentioned had been higher than anticipated preliminary fourth-quarter outcomes on Tuesday, with sturdy gross sales and profitability for the vital vacation procuring interval, sealing a profitable turnaround yr.

The German sportswear model targeted up to now yr on fuelling a development for its retro multicoloured, three-striped sneakers just like the Samba and Gazelle to reboot its model and increase gross sales, and has benefited from weaker efficiency at its greater rival Nike (NYSE:NKE).

It mentioned income was up 19% yr on yr in currency-neutral phrases within the fourth quarter, whereas its gross margin elevated by 5.2 share factors to 49.8%.

Adidas (OTC:ADDYY) reported gross sales of 5.956 billion euros ($6.2 billion), up from 4.812 billion a yr in the past.

For the complete yr, income was up 12% in currency-neutral phrases, hitting 23.683 billion euros ($24.7 billion). Profitability improved with the gross margin rising by 3.3 share factors to 50.8%.

The outcomes mark a major restoration for Adidas from an annual loss in 2023 for the primary time in additional than 30 years, bruised by slicing ties with disgraced rapper Ye, previously often known as Kanye West, resulting in the abrupt ending of its profitable Yeezy shoe line.

Working revenue for 2024 elevated to 1.337 billion euros, from 268 million euros in 2023.

($1 = 0.9593 euros)