- Adidas’ operating profit forecast for 2025 is between €1.7 billion and €1.8 billion, missing the estimated €2.04 billion.
- Fourth-quarter gross profit was €2.97 billion, up 38% year over year, surpassing the estimated €2.88 billion.
- The fourth-quarter gross margin improved to 49.8% from 44.6% the previous year.
- The company reported a significant turnaround in operating profit, reaching €57 million compared to a loss of €377 million the previous year.
- Fourth-quarter revenue was €5.97 billion, marking a 24% year-over-year increase.
- European revenue increased by 26% year over year to €1.75 billion, exceeding the estimate of €1.69 billion.
- North American revenue saw a 16% rise to €1.34 billion, slightly above the estimated €1.33 billion.
- Sales in Greater China grew by 19% to €794 million, surpassing the estimate of €774 million.
- Emerging Markets revenue climbed by 26% to €940 million, beating the estimate of €892.2 million.
- Latin American revenue soared 68% to €807 million, outperforming the estimated €755.2 million.
- Other businesses revenue dropped 42% to €19 million, below the estimated €29.8 million.
- The loss from continuing operations decreased by 93% to €27 million, close to the estimated €23 million loss.
- The net loss was reduced by 90% to €39 million, larger than the anticipated €19.7 million loss.
- Royalty and commission income increased by 53% to €26 million, exceeding the estimate of €21.6 million.
- Cost of sales rose 12% year over year to €3.00 billion, higher than the estimated €2.93 billion.
- Operating expenses increased by 17% to €2.99 billion, with marketing expenses at €754 million, below the estimated €775.3 million.
- Inventories grew by 10% to €4.99 billion, exceeding the estimated €4.63 billion.
- The net cash balance at the period end was €2.46 billion, a 72% year-over-year increase.
- For the full year 2024, the dividend per share doubled to €2, surpassing the estimated €1.45.
- 2024 gross margin was reported at 50.8%, with an operating profit of €1.34 billion and an operating margin of 5.6%.
- Net income from continuing operations for 2024 was €824 million, beating the estimate of €760 million.
- Adidas expects currency-neutral sales growth at a high-single-digit rate in 2025.
- The company anticipates double-digit sales growth for the Adidas brand in North America, Greater China, Emerging Markets, and Latin America.
- European and Japan/South Korea revenues are projected to increase at a high-single-digit rate.
A look at adidas Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, adidas has a positive long-term outlook. With a Growth score of 3, the company is positioned for expansion and development in the sports industry. The Resilience score of 3 indicates that adidas is well-prepared to navigate challenges and maintain stability over time. Furthermore, the Momentum score of 4 suggests that adidas is experiencing positive trends and is gaining traction in the market.
Overall, adidas, a company that manufactures sports shoes and equipment, shows promise for the future. While the Value and Dividend scores are both at 2, the higher scores in Growth, Resilience, and Momentum point towards a potentially strong performance ahead for adidas in the sports apparel and equipment sector. With its global presence and diverse range of products, adidas remains a notable player in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
