+ Positive/Improving Fundamentals
+ Constructive Technical Setup
+ Improving Analyst Sentiment
AI-Assisted Investment Insights
Adidas's Q3 2024 performance was driven by a combination of factors, including:
Retro Sneaker Revival: The resurgence of iconic retro styles like the Samba and Gazelle fueled significant revenue growth.
Strategic Product Focus: Adidas strategically emphasized its heritage and iconic products, attracting new consumers and retaining existing fans.
Strong Performance in Key Segments: Both the Lifestyle and Performance segments experienced double-digit growth, indicating the effectiveness of Adidas's strategy.
Improved Gross Margins: Gross margins increased by 2.0 percentage points to 51.3%, contributing to the company's profitability.
Operational Efficiency: Adidas's focus on operational efficiency resulted in a substantial boost in operating profit, reaching €598 million.
Positive Currency Impact: Currency-neutral revenues increased 10% compared to the prior year, while euro terms saw a 7% growth to €6.438 billion.
Overall, Adidas's Q3 results demonstrate the success of CEO Bjorn Gulden's turnaround strategy, which has revitalized the brand and positioned it for continued growth.
Source: yahoo finance
Source: Trading View
Source: Trading View
Source: Trading View
ADIDAS PRESS RELEASE (15 October 2024). adidas reports better-than-expected third quarter results and increases its full-year guidance. adidas today announced preliminary results for the third quarter of 2024. In Q3, currency-neutral revenues increased 10% versus the prior year. In euro terms, the company’s revenues grew 7% to € 6.438 billion (2023: € 5.999 billion). Excluding Yeezy sales in both years, currency-neutral revenues increased 14% during the quarter. The company’s gross margin increased 2.0 percentage points to 51.3% in Q3 (2023: 49.3%). The year-over-year increase of the underlying adidas gross margin was even stronger. The company’s third quarter operating profit increased to € 598 million (2023: € 409 million), including a contribution of around € 50 million from the sale of parts of the remaining Yeezy inventory. The company has increased its full-year guidance to reflect the better-than-expected performance during the quarter and the current brand momentum. adidas now expects currency-neutral revenues to increase at a rate of around 10% in 2024 (previously: increase at a high-single-digit rate). The company’s operating profit is now expected to reach a level of around € 1.2 billion (previously: to reach a level of around € 1.0 billion). Within its guidance, the company assumes the sale of the remaining Yeezy inventory during the remainder of the year to occur on average at cost. This would result in additional sales of around € 50 million and no further profit contribution in the fourth quarter.
REUTERS. Adidas raises 2024 guidance again, citing good brand momentum.
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