Full Year 2024 Adidas AG Earnings Call Transcript
Key Points
- Adidas AG (ADDDF) reported a strong 12% currency-neutral sales growth for 2024, with the Adidas brand itself growing by 13%.
- The company achieved a significant improvement in gross margin, reaching 50.8%, which is a 330 basis point increase from the previous year.
- Operating profit increased by 400% to EUR 1,337 million, demonstrating strong financial performance.
- Adidas AG (ADDDF) experienced double-digit growth in most regions, with particularly strong performance in Europe and Latin America.
- The company successfully managed inventory levels, with a focus on reducing discounting and improving full-price sell-through rates.
- Adidas AG (ADDDF) faces potential challenges from macroeconomic factors, including inflation and potential tariffs in the US, which could impact retail volumes.
- The company is still dealing with the absence of Yeezy sales, which contributed EUR 650 million in 2024, and this will not be repeated in 2025.
- There are concerns about the competitive landscape, particularly in the US, where Adidas AG (ADDDF) aims to grow but faces strong competition.
- The company is undergoing organizational changes, including the reduction of 500 roles at headquarters, which may impact internal operations.
- Adidas AG (ADDDF) is cautious about the economic environment, particularly in Europe, where retailers have expressed concerns about consumer demand and traffic.
Ladies and gentlemen, welcome to the Adidas AG full year 2024 conference call. I am Maura, Chorus Call operator. (Operator Instructions) The conference is being 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 2024 full year results conference call on a beautiful sunny day here in Herzogenaurach. Our presenters today are our CEO, Bjorn Gulden; and our CFO, Harm Ohlmeyer.
And while there is actually a lot of newness in our product pipeline, as you will see and hear in a minute, there's not much new about the agenda of this call. As always, we will kick it off in a second with Bjorn and Harm taking you through the puts and takes of the quarter and the full year and explaining our outlook for 2025 to you. After that, we will
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