Adidas AG Q3 Results Overview

Adidas AG (ETR:ADSGN) shares rose 1.7% to €217.50 following third-quarter results showing solid sales momentum across most regions, despite challenges from the absence of Yeezy-related income.

Financial Performance

• Q3 Sales: €6.4 billion (10% growth adjusted for currency; 14% growth excluding Yeezy)
• EBIT: €598 million, aligning with preliminary estimates
• Gross Margin: Steady at 51.3%

Regional Highlights

• EMEA: 18% growth, exceeding expectations
• North America: Declined 7%, contrary to a 2% growth forecast
• Greater China: 9% growth, slightly below the 11% forecast
• Emerging Markets: 16% growth
• Latin America: 28% growth

Channel Performance

• Wholesale Growth: 13%
• Direct-to-Consumer (DTC): 7% growth, 17% excluding Yeezy impact
• E-commerce: Over 25% growth when adjusted for Yeezy

Future Outlook

Adidas reaffirmed its full-year 2024 guidance, targeting ~10% currency-neutral sales growth and maintaining its EBIT target at €1.2 billion. Analysts are watching for additional insights during the upcoming management call regarding fourth-quarter and 2025 sales outlook.

While some one-off items impacted results, overall earnings remained stable. However, macroeconomic uncertainties, particularly with foreign exchange risks, may pose challenges going forward. Adidas retains its position as the second-largest sportswear brand globally, focusing on footwear, which constitutes over half of its sales.

With GBL holding an 8% stake, Adidas is poised for growth with ongoing strategic investments.