Adidas raises outlook on better than expected Q1 results

Adidas reported preliminary currency-neutral revenues increased 8 percent in the first quarter. In euro terms, the company’s revenues grew 4 percent to 5.458 billion euros.

The company’s gross margin improved 6.4 percentage points to 51.2 percent and operating profit increased to 336 million euros.

As a result of the better-than-expected performance during the quarter, the company has increased its full-year guidance and now expects currency-neutral revenues to increase at a mid to high-single-digit rate in 2024. The company’s operating profit is now expected to reach a level of around 700 million euros.

The company said, latest Yeezy drop generated revenues of around 150 million euros and an operating profit of around 50 million euros in the first quarter.

Adidas continues to expect unfavourable currency effects to weigh significantly on the company’s profitability this year.