Adidas has reported a significant increase in its operating profit, nearly tripling year-on-year in the first half of 2024.
- The company’s operating profit reached €682m, reflecting a 189% growth compared to the previous year.
- Adidas updated its annual profit forecast, now expecting up to €1bn, double the initial projection of €500m.
- Revenue increased by 6%, with strong sales growth in Europe and Latin America, aided by major football events.
- The brand faced criticism over its campaign decisions involving model Bella Hadid, leading to an official apology.
Adidas has announced a remarkable financial performance for the first six months of 2024, with its operating profit rising by a substantial 189% compared to the previous year, reaching €682 million. This impressive growth has prompted the company to revise its full-year profit forecast upwards for the second time, now predicting a potential €1 billion, twice the initial guidance.
The company’s revenue also saw a healthy increase of 6% year-on-year, amounting to €11.3 billion. This growth has been largely fuelled by double-digit sales increases in Europe (19%) and Latin America (33%). Key football tournaments such as the Euros and Copa America played a significant role in boosting sales. Adidas’s strategic sponsorships, including support for national teams such as Spain and Argentina, have undoubtedly contributed to its success this summer.
CEO Bjørn Gulden expressed optimism about the company’s prospects, particularly with the upcoming Paris Olympics. He noted the “great atmospheres and with huge interest from the fans,” indicating potential future benefits from these sporting events.
However, not all news was positive for Adidas, as the company encountered backlash over its advertising choices. The controversy centred around its campaign for the SL72 running trainer, which initially featured and then removed model Bella Hadid. Her disappointment was made public, citing a “lack of sensitivity” in the campaign development. While Adidas has apologised for any distress caused, it highlights the challenges brands face in navigating complex social and cultural landscapes.
Adidas’s financial achievements in 2024 underscore its strategic strengths, yet its challenges point to the need for nuanced brand management.
