Adidas closed 2024 with impressive financial results, marking a sharp rebound from the challenges of the previous year. Currency-neutral sales grew by 12%, exceeding initial forecasts, and in euro terms, revenue climbed 11% to €23.68bn, compared to €21.43bn in 2023. This growth was fuelled by a 17% surge in footwear sales, with the Originals, Football, and Training lines driving strong consumer demand.
Profitability improved dramatically, with operating profit reaching €1.34bn, more than €1bn higher than in 2023. Net income from continuing operations followed the same trajectory, jumping to €824m, in contrast to the €58m loss recorded the previous year. Gross margin rose to 50.8%, an increase of 3.3 percentage points, despite negative currency impacts. Encouraged by these results, Adidas proposed a dividend increase to €2.00 per share, up from €0.70, reflecting confidence in its prospects.
A key factor in the company’s 2024 performance was the sale of the remaining Yeezy inventory, which generated €650m in revenue over the course of the year. Whilst the Yeezy line had been a significant contributor to Adidas’ past earnings, its phaseout signals a strategic shift towards strengthening the Adidas brand itself rather than relying on external collaborations. In comparison, Yeezy sales in 2023 brought in €750m, highlighting the steady reduction of this segment before its final discontinuation.
Reflecting on the company’s performance, CEO Bjørn Gulden emphasised the strength of the Adidas brand and the hard work of its teams: “We grew double digits in 2024 (+12% currency-neutral) and improved our operating profit by more than €1bn to €1.337bn. This development was much better than we had expected, and we are, of course, very pleased with this.”
Strategic shifts and leadership changes
Under Gulden’s leadership, Adidas implemented key strategic adjustments aimed at reinforcing its market position. A major shift involved granting more autonomy to regional managers, allowing them to better cater to local consumer needs. This approach played a crucial role in boosting sales across Europe, North America, Greater China, and emerging markets, all of which recorded double-digit growth.
The company also underwent significant leadership changes in 2024. Martin Shankland, executive board member for global operations, stepped down after 27 years at Adidas, leaving his position on 10 August 2024. Additionally, Arthur Hoeld, responsible for global sales, left the executive board at the end of October, succeeded by Mathieu Sidokpohou, the former managing director for Europe. These transitions signal Adidas’ commitment to refining its global strategy and driving further growth.
Despite the success, Gulden acknowledged that Adidas still has room for improvement but remains confident about its direction: “Although we are not yet where we want to be long-term, it was a very successful year that confirmed the strength of the Adidas brand, the potential of our company, and what a fantastic job our teams are doing.”
Looking ahead to 2025, Adidas forecasts high-single-digit revenue growth and an operating profit between €1.7bn and €1.8bn. The company expects double-digit expansion in key markets, including North America, Greater China, emerging markets, and Latin America, while Europe and Japan/South Korea are projected to grow at a high-single-digit rate.
Notably, Adidas does not anticipate any further Yeezy-related revenues or profits in 2025, making 2024 the final year of its association with the brand. The phase-out of the Yeezy inventory, which contributed €200m to operating profit in 2024, marks a decisive shift for Adidas, reinforcing its focus on core brand strength, innovation and diversified product lines rather than reliance on high-profile partnerships.
To sustain this momentum, Adidas is focusing on a stronger product pipeline, more impactful marketing strategies, and closer collaboration with retailers. The company is also committed to enhancing its direct-to-consumer (DTC) channels, following a 15% increase in own retail sales in 2024. As of 31 December 2024, the company employed 62,035 people worldwide, up from 59,030 at the end of 2023.