LONDON (Reuters) -Adidas reported what it said were better than expected preliminary fourth-quarter results on Tuesday, with strong sales and profitability for the important holiday shopping period, sealing a successful turnaround year.
The German sportswear brand focused in the past year on fuelling a trend for its retro multicoloured, three-striped shoes like the Samba and Gazelle to reboot its brand and boost sales, and has benefited from weaker performance at its bigger rival Nike (NYSE:).
It said revenue was up 19% year on year in currency-neutral terms in the fourth quarter, while its gross margin increased by 5.2 percentage points to 49.8%.
Adidas (OTC:) reported sales of 5.956 billion euros ($6.2 billion), up from 4.812 billion a year ago.
For the full year, revenue was up 12% in currency-neutral terms, hitting 23.683 billion euros ($24.7 billion). Profitability improved with the gross margin rising by 3.3 percentage points to 50.8%.
The results mark a significant recovery for Adidas from an annual loss in 2023 for the first time in more than 30 years, bruised by cutting ties with disgraced rapper Ye, formerly known as Kanye West, leading to the abrupt ending of its lucrative Yeezy shoe line.
Operating profit for 2024 increased to 1.337 billion euros, from 268 million euros in 2023.
($1 = 0.9593 euros)