BERLIN — German sportswear giant Adidas on Tuesday raised its full-year revenue outlook for the third time this year after registering a “better-than-expected performance” in the most recent quarter.
Between July and September, sales totaled 6.4 billion euros ($7 billion), a 7-percent increase on the same period last year, the group said in a statement.
Meanwhile, Adidas’ third-quarter operating profit closely watched by analysts as a measure of underlying performance rose to 598 million euros from 409 million euros in 2023.
Adidas said it had increased its financial guidance for the year “to reflect the better-than-expected performance during the quarter and the current brand momentum.”
The outfitter now anticipated a year-on-year increase in sales of around 10 percent in 2024. Previously, the group had been expecting an increase “at a high-single-digit rate.”
Adidas said its operating profit was now also set to come in around 1.2 billion euros, up from its previous estimate of 1 billion euros.
The announcement was the third time this year that Adidas has raised its financial guidance, following upward revisions after both the first and second quarters.
The improving outlook comes after a difficult 2023, in which Adidas recorded its first loss in over 30 years.
Among the issues faced by the brand was a costly breakup with the US rapper Kanye West after allegations of antisemitism against the artist.
Since then, Adidas has been slowly selling off its inventory of Yeezy-branded products from its lucrative collaboration with West.
Excluding old Yeezy stock, the group’s currency-neutral revenues rose by 14 percent year on year in the third quarter, compared with 10 percent when the sales were factored in.
The group said it expected the remaining stock to be sold “at cost” over the remainder of 2024.
The sales would add some 50 million euros to the group’s revenues and nothing to profits, Adidas said.
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