In This Article:
-
Net Sales Growth: Currency-neutral growth of 13%; adidas brand growth of 17%.
-
Gross Profit Margin: Increased by 100 basis points to over 52%; adidas brand up 160 basis points.
-
Operating Profit (EBIT): EUR 610 million, nearly a 400 basis point improvement.
-
Marketing Expenses: Increased by 14%, approximately EUR 90 million more in absolute terms.
-
Net Income: EUR 436 million, a 155% increase.
-
Basic Earnings Per Share: EUR 2.44.
-
Inventory: Up 15%, reaching EUR 5.1 billion.
-
Cash and Cash Equivalents: EUR 1.4 billion, a 32% increase from the previous year.
-
Net Leverage Ratio: Reduced from 4.7 times to 1.6 times.
-
Store Openings: Net increase of 70 stores over the last 12 months.
-
Regional Sales Performance: North America adidas brand up 13%, Europe up 16%, Greater China up 14%, LatAm up 27%, Emerging Markets up 25%.
-
Channel Performance: Wholesale up 18%, own retail stores up 13%, e-commerce down 3% (excluding Yeezy, adidas brand up 18%).
-
Product Division Growth: Footwear up 17%, Apparel nearly double-digit growth, Accessories up 10%.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Adidas AG (ADDDF) reported a stronger-than-expected first quarter, with net sales up 13% currency-neutral, and the adidas brand alone up 17%.
-
The company achieved a gross profit margin of over 52%, showcasing the strength of its current product line and effective sales strategies.
-
Adidas AG (ADDDF) saw growth across all markets, with notable increases in Europe (16%), Greater China (14%), and Latin America (27%).
-
The company has successfully reduced its dependency on China for US market sourcing, with China now accounting for only 3% of footwear production for North America.
-
Adidas AG (ADDDF) is making significant strides in innovation, particularly in running shoes, with products like the Adizero range winning marathons and setting records.
Negative Points
-
The company faces challenges from US tariffs, which could impact profitability and necessitate price increases in the US market.
-
E-commerce sales were down 3%, primarily due to the absence of Yeezy products, which had contributed significantly to sales in the previous year.
-
Adidas AG (ADDDF) is dealing with uncertainties in the US market due to potential changes in tariff rates, which could affect consumer demand and pricing strategies.
-
The company is still working to improve its performance in the basketball category, which remains relatively small compared to other segments.
-
Despite strong overall performance, the company acknowledges that maintaining high gross margins throughout the year may be challenging due to market dynamics and potential discounting.