Following today’s release of Adidas’ figures for the year ending 31 December 2024; Alice Price, apparel analyst at GlobalData, a leading data and analytics company, offers her view: “Adidas has had a commendable year, turning itself around from a decline of 4.8% in FY2023, to a total net sales growth of 10.5% in FY2024, almost reaching €23.7bn. This impressive performance underscores its focus on enhancing its fashion proposition, as Adidas continues to drive momentum for its best-selling Originals trainers through sought-after collaborations and eye-catching patterns and colourways, as well as the brand doubling down on innovation. The sportswear player also witnessed its full-year operating profits soar by over €1bn to reach more than €1.3bn, as it managed to optimize inventory levels and prevent build-up of excess stock. Q4 was the standout quarter for the year, with revenues rising a stellar 24.0%, which lays the groundwork for another strong year in FY2025, with Adidas anticipating currency-neutral revenues to increase at a high-single-digit rate, and operating profits projected to be in the region of €1.7bn and €1.8bn.
“In terms of category performance, footwear remained the breadwinner, with currency-neutral revenues rising 17%, fuelled by the unwavering desirability of its Originals lines, coupled with strong performances in performance basketball, training, running, and football. The latter drove demand through its latest takes on the iconic Predator boots, including its tie-up with football legend David Beckham, while running benefited from its new iteration of the innovation-packed Adizero Adios Pro running shoe, which launched in September 2024, enabling it to rival disruptors like HOKA and On. Its apparel proposition grew 6% in FY2024, and while its performance was inhibited by a conservative sell-in approach in North America in H1, Adidas focused on enhancing the desirability of its lifestyle proposition by launching retro-inspired football jerseys and capitalizing on the popularity of the three stripes through offerings such as Adicolor and Firebird within its Originals range. Accessories grew just 2%, with an improved performance in the second half of the year.
“In Adidas’ largest market of Europe, currency-neutral revenues rose 19%, reflecting strong double-digit growth in both wholesale and direct-to-consumer channels, as its Originals trainers were at the helm of current fashion trends across the region. Latin America remained Adidas’ star performer, with revenues increasing 28%, boosted by its growing economy as well as increased attention generated from the CONMEBOL Copa America tournament, which was won by Adidas’ Argentina team. Greater China and Japan/South Korea both experienced revenue growth of 10%, bolstered by the growing desirability of international sportswear brands. North America remained Adidas’ Achilles heel, with sales declining 2%, as it struggles to recover the loss of its Yeezy brand. However, the region did achieve strong 14.7% growth in the fourth quarter, suggesting Adidas’ fortunes in the region will change in FY2025.”
