adidas Confirm Double-Digit Growth for Q2 2024

The current state of the sneakersphere is playing into the hands of some brands, while others aren’t fairing so well. One of the lucky ones has been , who’ve seen the market play into their favour through the terracewear trend and the continual offloading of stock. However, the latter will be winding down soon, as waves of sneaks get restocked – and even sent to the outlets.

Just today Team Trefoil unveiled their preliminary results for Q2 of 2024, and announced that currency-neutral revenues grew by 11 per cent when compared to the year prior. Interestingly, when excluding Yeezy sales from both years, their revenues grew by a whopping 16 percent. Reduced discounts, better sell-through, lower sourcing costs and more favourable category mix has seen adidas’ gross margin reach 50.8 per cent, compared to the year’s previous 50.9 per cent. Year-on-year the smaller Yeezy operation has negatively impacted the business. Within adidas’ full-year guidance, they are assuming that remaining Yeezy sales will occur on average at cost and result in additional sales of around 150 million euros.

With the ‘better-than-expected’ performance during Q2 on top of their current momentum, adidas have increased their full-year guidance. Currency-neutral revenues are now expected to increase at a ‘high-single-digit’ rate for the rest of 2024, with operating profits to reach around 1 billion euros, previously expected to reach only 700 million euros. Team Trefoil also expect currency effects to ‘weigh significantly on the company’s profitability this year’.

adidas continue on their hot streak in 2024 with the Samba, Campus 00s and Gazelle continuing to be hot commodities, while high-heat collaborations and their football partnerships are continuing to carry the brand.

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