Adidas boosts dividend to €2.00 per share after strong 2024 performance

Overview

Adidas delivered strong financial performance in 2024, significantly surpassing initial expectations. The company reported €23.7bn in revenue, reflecting a 12% increase on a currency-neutral basis. Gross margin improved 3.3 percentage points to 50.8%, despite negative currency effects. Adidas also saw a €1bn improvement in operating profit, reaching €1.34bn, while net income from continuing operations hit €824m. The company ended the year with healthy inventory levels of €5.0bn, supporting further double-digit growth in the Adidas brand.

CEO Bjørn Gulden highlighted Adidas’ progress: “Although we are not yet where we want to be long term, it was a very successful year that confirmed the strength of the adidas brand, the potential of our company and what a fantastic job our teams are doing. We still have a lot to improve but I am very proud of what our people achieved in 2024.”

Q4 2024 vs. Q4 2023:

Revenue rose to €5.97bn (+24% YoY), reflecting broad-based growth across all major regions.
- Footwear revenue growth was 26% YoY, with strong demand for Originals, Football, and Training categories.
- Apparel revenue growth was 11% YoY, supported by strong performance in Football, Running, and Sportswear.
- Accessories also continued to grow and increased 7% YoY.
- Direct-to-Consumer (DTC) sales increased 15% YoY, while wholesale revenue grew 25% compared to Q4 2023.
Gross margin recorded a value of 49.8% (+5.2pp vs. 2023), driven by lower product and freight costs and a more favorable business mix.
Operating profit was €57m, compared to a €377m loss in Q4 2023, marking a significant turnaround, mainly due to the sale of a warehouse in North America and of the remaining Yeezy inventory.
Net loss recorded a value of only €20m, a significant improvement over the loss of €359m in Q4 2023.
Adidas recorded double-digit revenue growth across key markets, with increases of +25% in Europe, +15% in North America, +16% in Greater China, +21% in Emerging Markets, +31% in Latin America, and +9% in Japan/South Korea, showcasing strong brand momentum worldwide.

Full-Year 2024 highlights:

Total revenue increased to €23.7bn (+10.5% YoY), significantly better than initially expected.
- The double-digit growth reflects the strong momentum of the adidas brand, which increased 13% in 2024.
- Footwear led the company’s growth with a currency-neutral increase of 17% YoY, driven by strong double-digit growth in Originals, Football, and Training.
- Apparel revenues grew 6% in 2024, while Accessories sales were up 2% YoY, reflecting significant improvements in the second half of the year.
- Online sales increased 18% YoY excluding Yeezy, with a focus on full-price sales.
Gross margin recorded a value of 50.8% (+3.3pp vs. 2023), mainly driven by lower freight and product costs, a more favorable business mix, and reduced discounting.
Operating profit increased significantly, to a value of €1.34bn (+398.3% YoY), with operating margin of 5.6% in 2024 (vs. 1.3% in 2023).
Net income from continuing operations was €824m, a clear improvement over the €58m loss from 2023.
Diluted EPS was also on an upward slope, reaching the level of €4.24 (compared to a loss of €0.67 in 2023).
Marketing investments were €2.84bn (+12% YoY), an important increase to drive brand heat globally.
Adjusted net borrowings decreased to €3.62bn (-20% YoY), while the company’s ratio of adjusted net borrowings over EBITDA improved strongly to 1.5x (vs. 3.3x in 2023).
Dividend proposal by the company is €2.00 per share, reflecting a significant increase from €0.70 in 2023.
Inventory levels at December 31, 2024 were €5.0bn, positioning Adidas for continued strong sales.

For fiscal year 2025, Adidas anticipates high single-digit currency-neutral revenue growth, supported by continued double-digit expansion of the Adidas brand. Operating profit is projected to range between €1.7bn and €1.8bn, driven by gross margin expansion and operational efficiencies. The company expects strong performance across all major markets, with double-digit sales growth anticipated in North America, Greater China, Emerging Markets, and Latin America. Additionally, Adidas will continue investing in digital and retail initiatives, expanding direct-to-consumer channels, and strengthening e-commerce. With momentum accelerating across product categories and regions, Adidas remains confident in sustaining strong top-line and bottom-line growth throughout 2025, supported by brand strength, innovation, and strategic market expansion.

The announcement of the main results didn’t bring significant movements on the German capital market, with ADS shares starting the trading day with a slight decrease compared to the previous day, but at the time of writing, the ADS price has re-entered an upward slope and is +0.88% higher. However, in the last month, the company’s stock price has experienced a much sharper decrease, by approximately -6%, also attributed to the trade war that seems to be taking shape between the US and Europe. Compared to the same period last year, ADS shares are still trading at a much higher level, their price having appreciated by over +26%.