dpa
Berlin
German sports goods makers Adidas has reported its first quarter preliminary operating profit at €336 million ($357 million), up from €60 million the year before.
Quarterly currency-neutral revenues increased 8% from the prior year level. In euro terms, the company’s revenues grew 4% to €5.4 billion from the prior year.
The company has increased its full-year guidance as a result of the better-than-expected performance during the quarter.
Adidas now expects currency-neutral revenues to increase at a mid- to high-single-digit rate in 2024. Previously it was expected to increase at a mid-single-digit rate.
The company expects annual operating profit to reach a level of around €700 million. Previously, it was expected to reach a level of around €500 million.
The latest Yeezy drop generated revenues of around €150 million and an operating profit of around €50 million in the first quarter.
In its guidance, the company assumes the sale of the remaining Yeezy inventory during the remainder of the year to occur on average at cost.
This would result in additional sales of around €200 million and no further profit contribution during the rest of the year.
The company continues to expect unfavourable currency effects to weigh significantly on the company’s profitability this year.
The effects are projected to continue to negatively impact both reported revenues and the gross margin development in 2024.
