By
Bloomberg
Published
Aug 1, 2024
Adidas AG reported a rebound in wholesale revenue and a return to growth in North America, when Yeezy sneaker sales were excluded, as the brand looks to increase profits after years of crisis.
The German sportswear company posted currency-neutral revenue growth of 17% in its wholesale business last quarter, a sign that retail partners are again embracing Adidas products, according to a statement Wednesday.
Globally, inventories of unsold goods dropped by 18% to €4.5 billion ($4.87 billion) in the second quarter, Adidas said, offering more details about its turnaround.
Now in his second year at the helm, Chief Executive Officer Bjorn Gulden has been winning over investors with a back-to-basics focus on sports and developing new footwear and apparel. While he’s capitalized on demand for classic shoes like the Samba and Gazelle, he’s now looking to impress with the launch of products that were developed since his arrival in January 2023.
Earlier this month, the company published figures showing better-than-expected second-quarter sales and raised its earnings forecast for the year. It now expects to generate operating profit of around €1 billion. That’s an increase from the previous target of €700 million but below analysts’ average estimate of €1.1 billion.
