Q3 2024 Adidas AG Earnings Call Transcript
Key Points
- Adidas AG (ADDDF) reported a strong Q3 2024 with a currency-neutral sales growth of 10.3%, and 14% growth excluding YEEZY.
- The company achieved a healthy gross margin of 51.3%, marking the first time the Adidas business had a higher margin than YEEZY.
- EBIT increased by almost 50% year-over-year to EUR598 million, with an EBIT margin of 9.3%, close to the midterm target of 10%.
- Adidas AG (ADDDF) experienced strong regional growth, particularly in Europe (18% growth) and Latin America (30% growth).
- The company is expanding its retail footprint with new store concepts, including women's stores and flagship locations, indicating a strategic investment in direct-to-consumer channels.
- Despite the positive growth, Adidas AG (ADDDF) continues to face challenges in the North American market, with only slight growth in the Adidas business.
- The company is still heavily investing in sales and marketing, which may not yet provide the expected leverage.
- Adidas AG (ADDDF) reported a decline in e-commerce sales by 3%, although the underlying business excluding YEEZY was up 25%.
- The financial expenses have been impacted by hyperinflation adjustments in Argentina and Turkey, although they have normalized compared to last year.
- The company is still dealing with the remaining YEEZY inventory, which is expected to contribute EUR0 in profit for Q4.
Ladies and gentlemen, welcome to the adidas AG Q3 2024 conference call and live webcast. I am Moira, the Chorus Call operator. I would like to remind you that all participants will be in listen-only mode and the conference is being recorded. (Operator Instructions) The conference must not be recorded for publication or broadcast.
At this time, it's my pleasure to hand over to Sebastian Steffen, Head of Investor Relations. Please go ahead, sir.
Thanks very much, Moira. Hello, everyone. Welcome to our Q3 2024 results conference call with our CEO, Bjørn Gulden; and our CFO, Harm Ohlmeyer. In a second, Bjørn and Harm will take you through the puts and takes of the quarter.
But before we go there, as always, I would like to ask you that during the Q&A session, you limit your initial questions to two in order to make sure that as many people as possible can ask their questions. Thanks very much in advance for sticking to that rule.
And now, before Bjørn is going to kick it
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
