Adidas has adjusted its profit forecast upwards to £1bn, highlighting strong sales.
- The company reported a 46% rise in operating profit for the third quarter.
- Sales of Samba and Gazelle trainers significantly boosted revenue.
- Adidas’ financial forecast reflects both present gains and future expectations.
- Remaining Yeezy inventory played a role in the recent profit surge.
Adidas has revised its full-year profit forecast to an impressive £1bn, marking a substantial upswing driven primarily by its Samba and Gazelle trainer brands. This adjustment comes as the sportswear giant experiences a 46% surge in operating profit, climbing from £342m to £500m. This remarkable increase is partly attributable to a £41.8m contribution from the ongoing sale of its remaining Yeezy inventory.
Overall sales for the third quarter rose by 7%, totalling £5.39bn, underscoring the robust performance of the Samba and Gazelle models. These iconic trainers have captured consumer interest and propelled Adidas’ revenue growth, significantly influencing the upward adjustment of the company’s profit forecast.
Adidas now anticipates a 10% jump in currency-neutral sales, amplifying the previous guidance of a high-single-digit rate. This optimistic outlook emerges amid a strategic turnaround under the leadership of CEO Bjørn Gulden. His efforts follow the company’s corporate restructuring after its separation from the artist formerly known as Kanye West, and the resultant challenge of managing unsold Yeezy stock valued at £1bn.
The sports brand has clarified that while the remaining Yeezy inventory’s disposal contributed significantly to the third-quarter profits, it does not expect further profit boosts from these sales in the forthcoming quarter. This clear-eyed assessment of its sales situation indicates a focus on long-term sustainable growth beyond temporary inventory liquidation gains.
Adidas’ revised profit forecast reflects strategic success, driven by trainer sales and effective inventory management.
