adidas Reports Continued Growth For Q4
The German sportswear brand reported an increase in sales across all markets except North America.
While the luxury sector continues to take a hit, sportswear unexpectedly came out on top. The German athletic retailer adidas reported a 12% increase in growth and €23.68 billion EUR in overall sales and full year profit increase of more than €1 billion EUR. According to initial financial reports, the company forecasted only a 10% growth.
The company saw growth of 18.9%, 10.3%, and 19.4% in the European, Chinese, Japanese, and South Korean markets, respectively. Despite its relative overall success, one region showed signs of slowing. North America recorded a 1.6% decrease in sales, a disappointing dip for the brand’s second largest market.
adidas largely attributes the North American decrease to Yeezy’s fiasco. Initially widely popular and profitable, the collaboration with Ye, formerly known as Kanye West, came to a troubled end. Following a series of internal disputes, adidas formally ended its collaboration with the rapper in 2022. As of last year, the brand had offloaded all Yeezy stock and remaining inventory amounting to €650 million EUR in profit for adidas.
However, excluding Yeezy sales, the brand still boasted an increase in sales of 18% for the past two years. Additionally, by the end of 2024, adidas began to see a 15% growth in the North American market.
Looking ahead, the company reports that it feels confident it will be able to increase market share and continue sales growth in the face of a potential economic downturn and an unstable geopolitical climate.
