LONDON (Reuters) – Adidas on Tuesday reported what it said were better-than-expected preliminary results for the fourth quarter, with strong sales and profitability for the important holiday shopping period, capping a successful turnaround year.
The German sportswear brand focused last year on riding the trend of its retro multi-colored three-stripe shoes such as the Samba and Gazelle to relaunch its brand and boost sales, benefiting from a weaker performance by its larger rival. Nike (NYSE:).
It said fourth-quarter revenue rose 19% year-over-year in currency-neutral terms, while its gross margin rose 5.2 percentage points to 49.8%.
Adidas (OTC: ) reported sales of 5.956 billion euros ($6.2 billion), up from 4.812 billion a year ago.
For the full year, revenue rose 12% in currency-neutral terms, reaching 23.683 billion euros ($24.7 billion). Profitability improved with gross margin increasing by 3.3 percentage points to 50.8%.
The results mark a significant recovery for Adidas from an annual loss in 2023 for the first time in more than 30 years, marred by the severing of ties with disgraced rapper Ye, formerly known as Kanye West, which led to the abrupt end of his lucrative Yeezy shoe line.
Operating profit for 2024 increased to 1.337 billion euros, from 268 million euros in 2023.
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