Q1 2025 Adidas AG Earnings Call Transcript
Key Points
- Adidas AG (ADDDF) reported a stronger-than-expected first quarter, with net sales up 13% currency-neutral, and the adidas brand alone up 17%.
- The company achieved a gross profit margin of over 52%, showcasing the strength of its current product line and effective sales strategies.
- Adidas AG (ADDDF) saw growth across all markets, with notable increases in Europe (16%), Greater China (14%), and Latin America (27%).
- The company has successfully reduced its dependency on China for US market sourcing, with China now accounting for only 3% of footwear production for North America.
- Adidas AG (ADDDF) is making significant strides in innovation, particularly in running shoes, with products like the Adizero range winning marathons and setting records.
- The company faces challenges from US tariffs, which could impact profitability and necessitate price increases in the US market.
- E-commerce sales were down 3%, primarily due to the absence of Yeezy products, which had contributed significantly to sales in the previous year.
- Adidas AG (ADDDF) is dealing with uncertainties in the US market due to potential changes in tariff rates, which could affect consumer demand and pricing strategies.
- The company is still working to improve its performance in the basketball category, which remains relatively small compared to other segments.
- Despite strong overall performance, the company acknowledges that maintaining high gross margins throughout the year may be challenging due to market dynamics and potential discounting.
Ladies and gentlemen, welcome to the adidas AG Q1 2025 conference call and live webcast. I am Maura, the Chorus Call operator. I would like to remind you that all participants will be in a listen-only mode, and the conference has been recorded. (Operator Instructions) The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Sebastian Steffen. Please go ahead.
Thanks very much, Maura. Good evening, good afternoon, good morning, everyone, wherever you're joining us today, and welcome to our Q1 2025 results conference call with our CEO, Bjorn Gulden; and our CFO, Harm Ohlmeyer.
Before Harm and Bjorn will talk you and take you through the puts and takes of the quarter and explain our expectations for the rest of the year. I would like to ask you, as always, once again to limit your initial questions during our Q&A session in order to allow as many people as possible to ask their questions. Thanks very much.
And now before I'm
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
