Sportswear giant Adidas has upped its guidance for the full year after sales jumped in a “better-than-expected” second quarter.
During the second quarter of 2024, revenue was up 9% from €5.34bn (£4.49bn) last year to reach €5.82bn (£4.89bn).
Operating profit during the period also increased to €346m (£290.6m), up from €176m (£147.8m) in 2023, which included a €50m (£41.94m) contribution from the sales of the remaining Yeezy stock.
Despite Adidas continuing to recover from the Yeezy fallout and it still having a “negative impact” on year-on-year comparisons, the sportswear giant said its underlying gross margin saw strong improvement.
In terms of outlook, Adidas has upped its full-year guidance as a result of the building of “current momentum”.
Full-year revenues on a currency neutral basis are now anticipated to increase at a high single-digit rate rather than a mid to high single-digit rate.
Operating profit is also expected to hit €1bn (£840m) for the year instead of the previously pledged €700m (£587.6m).
A spokesperson for Adidas added: “Within its guidance, the company assumes the sale of the remaining Yeezy inventory during the remainder of the year to occur on average at cost. This would result in additional sales of around €150m and no further profit contribution during the remainder of the year.
“The company continues to expect unfavorable currency effects to weigh significantly on the company’s profitability this year. These effects are negatively impacting both reported revenues and the gross margin development in 2024. This was particularly the case during the first half of the year.”
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