Adidas Revises Estimates for FY 2024 Upward

In the year of the men's European Football Championship, the America's Cup, the Olympics and the Paralympics, sportswear brands are under special surveillance by shareholders. And while Nike is disappointing the market by cutting its revenue estimates for the current year to such an extent that the share price has fallen 24% in the last month and more than 37% since the start of the year, Adidas on the other hand announced an upward revision of its 2024 profitability targets for the second time in three months against a backdrop of growing demand for classic trainers and higher sales from dwindling Yeezy footwear stocks. In Frankfurt, the group's shares have posted a positive performance of 28 per cent since January.

The German sportswear group estimates that it will achieve an operating profit of around EUR 1 billion in the current financial year, compared to EUR 700 million in the previous year. The estimates are in line with analysts' forecasts.

The revision comes in light of a good second quarter sales performance, which exceeded expectations, rising 11% year-on-year. Excluding Yeezy products, sales would have increased by 16%, demonstrating how adidas' core business is on the upswing and becoming less dependent on the collaboration with the rapper Ye (now broken) than last spring and summer.

CEO Bjorn Gulden is focusing on the brand's best-selling products by ensuring more regular deliveries in an attempt to close the gap with industry leader Nike by competing with best-selling products such as the Air Force 1 and Dunk trainers.

The financial year 2023 had not ended in the best way for Adidas, which had to absorb the effects of the cancellation of its partnership with Ye. The German sportswear group had posted a fourth-quarter net loss of €379 million, still an improvement on last year's €512 million red. revenues fell by 8% to EUR 4.81 billion compared to EUR 5.21 billion last year.