Adidas grew revenue by 11 percent in its second quarter ended May 2024, compared to the same period last year, Meanwhile, second-quarter operating profit reached €346 million ($376 million), compared to €176 million the year before.
It’s the latest evidence of Adidas’ turnaround under chief executive Bjørn Gulden, who was appointed to lead the brand in the aftermath of the damaging termination of its Yeezy sneaker partnership. Central to the turnaround has been the rise of the terrace footwear trend, popularised by Adidas’ retro Samba and Gazelle low-rise sneaker lines, while the brand has also been quick to push forward new models like the Campus and the SL 72.
The German sportswear giant’s better-than-expected performance led it to upgrade its full-year earnings guidance, protecting full-year revenue to grow at a high-single-digit rate this year, compared to the initial mid-single-digit growth rate forecast. Adidas also said it expects full-year operating profit to reach €1 billion ($1.1 billion), up from an initial forecast of €700 million.
It’s the second time in recent months that Adidas has improved its profit guidance.
The brand also expects to sell off the remainder of its Yeezy inventory by the end of the year, which is expected to generate an additional €150 million in sales.
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