Adidas: share price surges, 2024 forecasts raised

(CercleFinance.com) - adidas last night announced that it had raised its annual sales forecast in the wake of a much better-than-expected Q1, sending its share price up 7% in Frankfurt on Wednesday.


The German sports equipment manufacturer now expects sales growth of between 5% and 10% this year, excluding currency effects, compared with a previous forecast of around 5%.

The brand added that it is now anticipating annual operating profit of around E700m, compared with a previous estimate of around E500m.

Q1 sales (at constant exchange rates) rose 8%, well above the consensus of only 4.5%.

At the same time, its gross margin improved by 6.4 points to 51.2%, while its operating income reached E336m, compared with a profit of E60m a year earlier.

This performance is impressive in view of the current difficult market context and a product offering that is not yet fully optimized, Stifel analysts said.

The arrival of the autumn/winter 2024/2025 collection should further accentuate this acceleration, it adds.

Up 7%, the number two in its sector behind American Nike was by far the biggest riser on the DAX index in Frankfurt and on the pan-European STOXX 600 index on Wednesday morning.


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