Adidas Posts Better-Than-Expected Profit, Confirms Outlook

By Nina Kienle

Adidas posted net profit that beat analysts' expectations and confirmed its preliminary figures for its first quarter, citing brand momentum.

The German shoe and sportswear major said Tuesday that for the three months ended March, net profit swung to 170 million euros ($182.3 million) from a loss of EUR39 million for the same period the prior year. The figure beat analysts' expectations of a EUR163.66 million profit, according to consensus estimates provided by Visible Alpha.

The gross margin improved by 6.4 percentage points to 51.2%, reflecting healthier inventory levels, reduced discounting, lower sourcing costs and a more favorable business mix, it said.

For 2024, the company confirmed its outlook, having raised it on April 16 after a successful start to the year. Adidas assumes that its remaining Yeezy inventory will be sold on average cost throughout the remainder of the year, resulting in sales of around EUR200 million, it said.

Write to Nina Kienle at nina.kienle@wsj.com

(END) Dow Jones Newswires

April 30, 2024 02:17 ET (06:17 GMT)

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