adidas has announced its financial results for Q1 2024, exceeding expectations with an impressive 8% increase in sales, totaling €5.46 billion EUR for the period ending March 31.
Despite recent challenges stemming from the loss of its YEEZY line and the split with Ye in late 2022, adidas experienced significant growth in the first quarter. The surge was primarily driven by heightened demand for its Samba, Gazelle, Spezial, and Campus franchises. CEO Bjorn Gulden attributed the growth to the company’s Lifestyle business, particularly the strong performance of Originals footwear, as well as positive trends in Running, Football, and Basketball products.
Although the sales of remaining Yeezy inventory contributed approximately €150 million EUR to revenue, footwear revenues saw a notable 13% increase on a currency-neutral basis, propelled by momentum in Originals and Football categories. Apparel sales also saw a modest 2% rise, despite lower wholesale channel sell-in due to high inventory levels in North America. However, accessories sales experienced a slight 1% decline during the period.
Gulden expressed both pride and surprise at the brand’s swift resurgence among consumers, particularly younger demographics. He emphasized the importance of managing franchises effectively and implementing strategic product transitions to avoid discounting. Despite challenges in North America, where sales decreased by 4%, Gulden remains optimistic about the brand’s turnaround, anticipating growth in the latter half of 2024.
Positive growth was observed in various regions, including Europe (up 14%), Latin America (up 18%), Greater China (up 8%), and Japan and South Korea (up 7%). However, North America lagged behind due to a double-digit decline in wholesale, with Gulden projecting growth in the region by the second half of 2024.
Looking ahead, Gulden reaffirmed adidas’ commitment to investing in product innovation, brand development, and marketing efforts to sustain growth. The company remains focused on long-term success, prioritizing strategic investments over short-term profit optimization to achieve its ambitious goals.
