German sportswear brand Adidas raises annual forecast again

After a better-than-expected third quarter, German sportswear manufacturer Adidas has once again raised its forecasts for the current year.

The company announced after the market closed from its headquarters in the Bavarian town of Herzogenaurach on Tuesday that operating profit is now expected to reach around €1.2 billion ($1.3 billion), up from its previous forecast of around €1 billion.

The Nike competitor also showed increased optimism for revenues: Sales are expected to increase by around 10%, adjusted for currency effects. Previously, growth in the high single-digit percentage range was targeted.

Adidas had already raised its outlook after the first and second quarters.

In the third quarter, sales increased by around 10% when adjusted for currency effects. In euros, growth was 7%, reaching €6.4 billion. Operating profit rose from €409 million to €598 million. Analysts had expected less.

A contribution to the operating profit came from a gain of €50 million from the sale of further parts of the Yeezy inventory.

After racist and sexist remarks by US rapper Kanye West, Adidas terminated their collaboration at the end of 2022 and began selling the previously highly successful products in 2023. These upheavals significantly strained the past financial year, alongside other factors.

Adidas assumes that the sale of the remaining Yeezy stock will proceed cost-neutrally on average over the rest of the year. This would result in additional sales of around €50 million in the fourth quarter without an additional profit contribution.