Half Year 2024 Adidas AG Earnings Call Transcript
Key Points
- Currency-neutral sales increased by 11%, with underlying business up 16%, surpassing expectations.
- Gross margin improved by 150 basis points to 50.8%, indicating strong profitability.
- EBIT nearly doubled to EUR 346 million, reflecting positive financial performance.
- Strong performance in Europe with a 19% total increase and 24% in underlying business.
- Positive developments in key markets like China, Japan, South Korea, and Latin America, showing robust growth.
- North America experienced an 8% decline in total business, highlighting regional challenges.
- E-commerce sales were down by 6%, impacted by previous high sales through e-commerce channels.
- Accessories segment saw an 8% decline, attributed to one-time factors and lack of prioritization.
- High marketing expenses, with EUR 90 million more spent compared to last year, impacting overall profitability.
- Continued FX headwinds expected to affect both top line and gross margin in the second half of the year.
Ladies and gentlemen, welcome to the adidas AG, Q2 2024 conference call live webcast. I'm Alice, the chorus call operator. (Operator Instructions) The conference must not be recorded for publication or broadcast.
At this time it's my pleasure to hand over to Sebastian, Head of Investor Relations. Please go ahead.
Thank you very much, Alice. Hello, everyone from sunny Herzogenaurach, and welcome to our Q2 2024 (technical difficulty). Our presenters today are our CEO, Bjørn Gulden; and our CFO, Harm Ohlmeyer. (Event Instructions) I hope that you are as excited as we are about the Olympics. So before we're going to dive into the quarter, and I hope you've got that metaphor here. Let's have a look at the latest chapter of our brand campaign, you got this. (video playing)
Yeah, hello. Also from my side, I hope you're enjoying the Olympics as much as we do on. I think so far,
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