Business
adidas expects revenue to grow at mid-to-high-single-digit rate in 2024 (OTCQX:ADDYY)
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- adidas AG press release (OTCQX:ADDYY): Q1 GAAP EPS of €0.95.
- Revenue of €5.46B (+3.6% Y/Y).
- Region wise: Currency-neutral sales in Europe increased 14% during the quarter driven by double-digit growth in both DTC and Wholesale as the current product is selling through very well across all channels. Revenues in Emerging Markets and Latin America also grew at double-digit rates (17% and 18%, respectively). Sales in Greater China were up 8%, with double-digit growth in Wholesale and E-com. Japan/South Korea posted revenue growth of 7% driven by a double-digit increase in DTC. Revenues in North America declined 4% during the quarter, reflecting a double-digit decline in the Wholesale channel as the company continued its disciplined sell-in approach.
- The company’s first-quarter gross margin was up 6.4 percentage points to 51.2% (2023: 44.8%).
- Inventories decreased 22% or more than € 1.2 billion year over year to € 4.427 billion (2023: € 5.675 billion).
- Adjusted net borrowings at March 31, 2024 amounted to € 4.958 billion (March 31, 2023: € 6.630 billion), representing a year-over-year decrease of 25% or almost € 1.7 billion
- adidas (OTCQX:ADDYY) now expects currency-neutral revenues to increase at a mid- to high-single-digit rate in 2024 (previously: increase at a mid-single-digit rate). Within this guidance, it is assumed that the remaining Yeezy inventory will be sold on average at cost, resulting in sales of around € 200 million throughout the remainder of the year. This corresponds to a projected total amount of Yeezy-related sales of around € 350 million in FY 2024 (previously: around € 250 million), of which around € 150 million were generated in the first quarter
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