Adidas’ net profit attributable to shareholders doubles in Q2

On July 31, Beijing time, Adidas announced its financial results for the second quarter and the first half of 2024. In the second quarter, Adidas achieved global revenue of 5.822 billion euros, an 11% year-on-year increase on a currency-neutral basis; operating profit was 346 million euros, up 96.7% year-on-year; net profit reached 206 million euros, increasing by 116.7%; net profit attributable to shareholders was 190 million euros, up 125.8%; and gross margin was 51%, an increase of 3.2 percentage points year-on-year.

In the second quarter, Adidas saw growth in all markets outside North America, with European revenue increasing by 19.4% year-on-year to 1.912 billion euros, emerging markets growing by 24.6% to 749 million euros, and Latin America increasing by 32.6% to 673 million euros, while the North American market declined by 7.7% to 1.302 billion euros.

In the first half of the year, Adidas reported global revenue of 11.28 billion euros, a 6.2% year-on-year increase; operating profit reached 682 million euros, up 188.8%; net profit was 376 million euros, increasing by 476.1%; net profit attributable to shareholders was 360 million euros, up 701.3%; and gross margin rose by 3.2 percentage points to 51%.

Focusing on the Chinese market, Adidas' revenue in the Greater China region for the second quarter was 822 million euros, a 9.3% year-on-year increase, marking five consecutive quarters of positive sales growth. In the first half of the year, total revenue in the Greater China region was 1.719 billion euros, up 8.5% year-on-year. In the first half of the year, Adidas opened over 100 new stores in China, and the proportion of locally produced products sold in the Chinese market has reached 75%.

Additionally, Adidas raised its full-year performance guidance, expecting revenue to grow at a high single-digit rate in 2024, with the operating profit forecast adjusted from 700 million euros to about 1 billion euros. Furthermore, Adidas CEO Bjørn Gulden announced that the company expects to clear the remaining Yeezy shoe inventory, valued at about 150 million euros, within the next few months.