Double-Digit Increase in Revenues and Gross Margin Improvement
- Adidas reports double-digit sales growth in Q4 2024
- Revenues up 24% to €5.97bn (£5.17bn)
- Gross margin improves by 5.2 percentage points to 49.8%
- Operating profit rebounded to €57m (£49.4m)
- Full-year revenues up 12%, reaching €23.68bn (£20.49bn)
- Gross margin improved by 3.3 percentage points to 50.8%
- Operating profit increased by over €1bn to €1.34bn (£1.16bn)
Adidas has reported better-than-expected results for the fourth quarter of 2024, with revenues growing by 24% to €5.97bn (£5.17bn) compared to €4.81bn in the same period last year. Excluding Yeezy sales in both years, revenues increased by 18%. The company’s gross margin improved by 5.2 percentage points, reaching 49.8%, while operating profit rebounded to €57m (£49.4m), compared to an operating loss of €377m (£326.8m) in Q4 2023. For the full year, Adidas saw a 12% increase in revenues, with total sales rising to €23.68bn (£20.49bn), compared to €21.43bn (£18.53bn) in 2023. Excluding Yeezy sales, revenues grew by 13%. The gross margin for 2024 improved by 3.3 percentage points to 50.8%, while operating profit jumped by more than €1bn to €1.34bn (£1.16bn), up from €268m (£232m) the previous year. Adidas CEO Bjørn Gulden attributed the strong performance to growing consumer and retailer interest across the brand’s lifestyle and performance categories, as well as consistent growth across regions and divisions. The results represent a strong rebound for the company after plunging to its first annual loss in over 30 years in 2023 due to severing ties with rapper Ye (formerly Kanye West) and the abrupt end of its highly profitable Yeezy shoe line.
Factuality Level: 7
Factuality Justification: The article provides accurate information about Adidas’ financial performance for Q4 2024 and full-year results, including revenue growth, gross margin improvements, and the CEO’s comments on future goals. However, there are some minor issues such as incorrect years mentioned (e.g., 2023 and 2024) and a link to sign up for a newsletter instead of relevant content.
Noise Level: 3
Noise Justification: The article provides relevant information about Adidas’ financial performance and CEO’s comments on future goals, but it lacks in-depth analysis or exploration of long-term trends or consequences of decisions.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses Adidas’ financial performance, including revenue growth, gross margin, and operating profit for the fourth quarter of 2024 and full year 2024. It also mentions the impact of severing ties with rapper Ye (formerly Kanye West) on the company’s Yeezy shoe line. However, it does not directly mention any specific financial markets or companies being impacted.
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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