adidas on Tuesday increased its 2024 sales forecast after reporting better-than-expected results in the third quarter of this year, according to Reuters.
This is the third time that the German sportswear giant has raised its revenue guidance this year, thanks to "brand momentum" and heightened demand for its flagship franchises, including the Samba and Gazelle footwear models.
As the brand continues to come back from losing its once-popular YEEZY line, adidas now forecasts that its currency-neutral revenues will grow by roughly 10% in 2024, up from the label's former high single-digit estimate. Additionally, the brand expects operating profit to reach €1.2 billion EUR, a sizable increase from its former forecast of €1 billion EUR.
In the third quarter, adidas' revenue climbed 7% to reach €6.438 billion EUR, which landed above analysts' expectations of €6.416 billion EUR. This quarter's sales figure was also up 14% from last year, with sales from Yeezy excluded. Meanwhile, adidas' Q3 operating profit was €598 million EUR, an increase from last year's €409 million EUR. According to the brand, sales from existing Yeezy products amounted to approximately €50 million EUR in profit.
The company does not expect the remaining Yeezy stock to contribute to overall profit, though its latest guidance does assume the former collaboration's final products will result in an additional €50 million EUR in sales.
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