Currency-Neutral Sales Up to €5.8bn (£4.8bn) Amid Yeezy Business Decline
- Adidas’ Q2 revenues increased by 11% in currency-neutral terms, reaching €5.8bn (£4.8bn)
- Footwear sales grew 17%, driven by strong product offerings in Originals and Football
- Apparel sales rose 6% due to double-digit growth in Football
- Accessories sales declined 8%
- European sales increased 19%, Emerging Markets and Latin America grew 25% and 33% respectively
- North American revenues fell 8% due to smaller Yeezy business
- Adidas raised its top and bottom-line guidance for the year
- CEO Bjørn Gulden expressed optimism about brand momentum and profitability improvements
Adidas has reported a strong increase in its second quarter revenue, up 11% in currency-neutral terms, reaching €5.8bn (£4.8bn). The growth was driven by the company’s strong product offerings in footwear and apparel, particularly in the Originals and Football categories. Accessories sales declined 8%. European sales increased 19%, while Emerging Markets and Latin America grew 25% and 33% respectively. However, North American revenues fell 8% due to a smaller Yeezy business. Adidas CEO Bjørn Gulden expressed optimism about the brand’s momentum and profitability improvements, raising its top and bottom-line guidance for the year. The company now expects full-year revenue growth in the high single digits and an operating profit of around €1bn (£843m.
Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about Adidas’ financial performance in Q2 and H1 2024, including revenue growth, profit margins, product categories, geographical sales, and the CEO’s outlook for the future. It is based on company data and quotes from the CEO, making it a reliable source of information.
Noise Level: 3
Noise Justification: The article provides relevant information about Adidas’ financial performance and the CEO’s outlook for the company, but it lacks in-depth analysis or exploration of long-term trends or consequences of decisions. It also does not offer significant actionable insights beyond the company’s guidance.
Financial Relevance: Yes
Financial Markets Impacted: Adidas’ stock price and related sports apparel industry
Financial Rating Justification: The article discusses Adidas’ financial performance, including revenue growth, operating profit, and guidance updates, which can impact the company’s stock price and the sports apparel industry as a whole.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
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