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The sportswear giant revealed that Q1 revenues grew 4% to €5.46 billion, compared to €5.27 billion in the first quarter of 2023.
In addition, the company’s gross margin improved by 6.4 percentage points to 51.2% during the quarter, up from 44.8% in the prior-year quarter. Operating profit came in at €336 million in Q1.
As a result of its “better-than-expected performance” Adidas increased its full-year guidance. It now expects currency-neutral revenues to increase at a mid to high-single-digit rate in 2024.
Operating profit is now expected to reach around €700 million, up from the previous expectation of around €500 million.
Adidas noted that the latest Yeezy drop generated revenues of around €150 million and an operating profit of around €50 million in the first quarter.
In its guidance, the company assumes the sale of the remaining Yeezy inventory during the remainder of the year to occur on average at cost.
However, Adidas “continues to expect unfavorable currency effects to weigh significantly on the company’s profitability this year,” it said in its press release. These effects are projected to continue to negatively impact both reported revenues and the company’s gross margin development in 2024.
