Adidas Forecasts Up to 10% Sales Growth in 2025, Eyes Strong Brand Performance

Adidas exceeded expectations in 2024, achieving 12% currency-neutral sales growth and a €1.337 billion operating profit. Q4 revenues surged 19%, driven by strong demand in footwear, apparel, and key markets like North America and China. The company forecasts up to 10% sales growth in 2025, with double-digit expansion for the Adidas brand. Operating profit is expected to rise to €1.7–€1.8 billion, supported by improved margins and strategic investments. Despite macroeconomic challenges, Adidas remains well-positioned for continued growth and profitability.

CONTENT:

• Adidas Reports Strong 2024 Results, Forecasts Up to 10% Sales Growth in 2025

Adidas Forecasts Up to 10% Sales Growth in 2025, Eyes Strong Brand Performance

Adidas (ADSGn.DE) projects its sales to grow by up to 10% in 2025, reflecting a slight deceleration from the strong 12% increase recorded in 2024. Despite this moderation, the Adidas brand is expected to continue expanding at a double-digit rate. Under CEO Bjorn Gulden, the company has maintained a cautious approach to market expectations, consistently outperforming forecasts each quarter. Adidas anticipates high single-digit revenue growth on a currency-neutral basis, slightly below the previous year’s performance.

The holiday quarter saw a notable 15% increase in North American sales, a critical market where Adidas competes closely with Nike. Additionally, the company experienced significant revenue gains across other regions, with Europe growing by 25%, Latin America surging by 31%, and Greater China expanding by 16%. Looking ahead, Adidas expects both North America and Greater China to achieve double-digit brand sales growth in 2025.

Profitability is also set to improve, with the company forecasting an operating profit between €1.7 billion and €1.8 billion ($1.8 billion to $1.9 billion) for the year, up from the €1.34 billion reported in 2024.

Adidas Reports Strong 2024 Results, Forecasts Up to 10% Sales Growth in 2025

Adidas delivered an impressive performance in 2024, surpassing expectations and laying the groundwork for continued growth in 2025. The company achieved a 12% increase in currency-neutral sales, exceeding initial projections, with total revenue rising 11% in euro terms to €23.683 billion. Profitability improved significantly, with the gross margin climbing 3.3 percentage points to 50.8%, driven by cost reductions, an optimized product mix, and lower discounting, despite unfavorable currency impacts. Operating profit surged by over €1 billion to reach €1.337 billion, while net income rebounded to €824 million from a €58 million loss in 2023.

Inventory levels rose to €5 billion to support anticipated double-digit growth for the Adidas brand, with both wholesale and direct-to-consumer channels posting strong gains across key markets, including Europe, Greater China, and Emerging Markets. Reflecting its solid financial performance, Adidas proposed increasing its dividend to €2.00 per share.

The fourth quarter of 2024 saw exceptional results, with currency-neutral revenue jumping 19%, reflecting broad-based growth across major regions. Gross margin improved by 5.2 percentage points to 49.8%, benefiting from cost efficiencies and a stronger product mix. The quarter also marked a turnaround, with an operating profit of €57 million compared to a €377 million loss in Q4 2023.

Footwear sales led the growth, rising 26% due to strong demand for Originals, Football, Training, Performance Basketball, and Sportswear collections. Apparel revenue increased 11%, bolstered by the success of Football, Running, Golf, and Sportswear categories, while accessories grew by 7%. Lifestyle products experienced robust demand, particularly the Terrace range, Campus franchise, and SL72 model, while the Performance segment excelled in Football, Running, Tennis, and Padel.

All sales channels performed well, with wholesale revenues rising 25% and direct-to-consumer sales increasing 15%, including an 18% gain in retail and a 10% rise in e-commerce. Regionally, Europe, Emerging Markets, and Latin America posted strong double-digit growth, while North America and Greater China rebounded with 15% and 16% increases, respectively. Profitability improved as gross margins expanded, and operating costs, though rising, declined as a percentage of sales. Marketing expenditures increased to support key campaigns and product launches, while operating profit rebounded despite minimal contribution from the final Yeezy inventory sale.

Looking ahead to 2025, Adidas expects high-single-digit currency-neutral sales growth, driven by an enhanced product lineup, greater localization, and stronger retail partnerships. North America, Greater China, Emerging Markets, and Latin America are projected to see double-digit growth, while Europe and Japan/South Korea are expected to grow at a high-single-digit rate.

Operating profit is forecast to reach between €1.7 billion and €1.8 billion, supported by improved margins and cost efficiencies, despite increased investments in marketing and sales. The outlook excludes any contributions from Yeezy sales following the inventory sell-off in 2024. With a strong brand momentum, strategic investments, and operational improvements, Adidas is well-positioned for sustained growth and profitability in the year ahead.