The sports goods manufacturer Adidas has raised its annual forecast after better-than-expected results in the second quarter of 2024. The Herzogenaurach-based DAX-listed company now expects a currency-adjusted revenue increase in the high single-digit percentage range for the current year. Previously, Adidas had predicted an increase in the mid to high single-digit range.

The operating result for the full year 2024 is now expected to reach around 1.0 billion euros, after previously being estimated at approximately 700 million euros. Adidas anticipates that the sale of the remaining Yeezy inventory will, on average, be break-even over the course of the year. This would result in additional revenue of around 150 million euros, but without any further profit contribution.

During the three-month period from April to June, revenue rose to 5.822 billion euros, compared to 5.343 billion euros in the same period last year. This corresponds to an increase of 9 percent in euros and 11 percent in currency-adjusted terms. Excluding Yeezy sales, the currency-adjusted revenue growth in the second quarter was 16 percent.

The gross margin in the past quarter stood at 50.8 percent, compared to 50.9 percent in the previous year. According to Adidas, the gross margin of the underlying business improved significantly due to better sell-through, fewer discounts, lower procurement costs, and a more favorable category mix. However, the reduction of the Yeezy business compared to the previous year negatively impacted margin development.

The operating profit rose to 346 million euros, compared to 176 million euros in the previous year. This includes a profit contribution of around 50 million euros from the sale of parts of the remaining Yeezy stock.

In the first quarter, the sale of Yeezy products had already generated 150 million euros in revenue and an EBIT contribution of 50 million euros.

The Adidas share was temporarily up 3.12 percent at 237.80 euros in after-hours Tradegate trading.