Adidas reports double-digit revenue growth as it aims to make itself ‘a great company again’

In its third-quarter results, the retailer saw currency-neutral sales increase 10% while the underlying Adidas business grew 14%.

Operating profit reached €598m (£498m), up from €409m (£341m) the previous year, with the sales of the remaining Yeezy stock contributing €50m (£41.6m) to the profit.

The Yeezy stock sale made revenues of around €200m (£166m), which the group said was “significantly” below the Yeezy sales of around €350m (£298m) in the year prior.

Sales across North America declined 7%, which was “solely related” to the significantly reduced Yeezy business. Sales in Europe, Latin America, and Greater China grew 18%, 28% and 9%, respectively.

Footwear revenues increased 14% on a currency-neutral basis, while apparel sales grew 5%, mainly due to a double-digit rise in football. Lifestyle and performance categories also saw double-digit increases.

Adidas chief executive Bjørn Gulden said the group is now focussing on building a solid platform for the future to “make Adidas a great company again”.

The retailer raised its full-year outlook on October 15, forecasting currency-neutral revenues to increase at a rate of 10%.

Operating profit is now expected to reach around €1.2bn (£1bn), up from around €1bn (£833m).

Gulden added: “The third quarter was a very strong quarter for us and again better than expected. 14% underlying growth for the Adidas brand, a very healthy gross margin above 51% and an operating profit of €598m (£498m) are numbers that we are very happy with and proof that we are moving in the right direction.

”I am especially proud that we are growing in all regions, in all channels and now also in all product divisions. Double-digit growth in both Lifestyle and Performance shows the currently good ‘balance’ in our business. The strong underlying growth in Greater China and the earlier-than-expected turn to positive numbers for the Adidas brand in North America during the last two quarters strengthens our confidence for the mid-term future. 

“This shows the strength of the Adidas brand and is a result of the great job our people are doing in all markets and all functions. With the heat we have again created for the Adidas brand, we have a generational opportunity to connect with a new generation of consumers both in lifestyle and performance – and that in all markets.”