In its Q1 2024 financial report released on Tuesday, adidas exceeded expectations by achieving an 8% surge in sales, totaling €5.46 billion by March 31.
Adidas Demonstrates Resilience Following YEEZY Departure
Adidas, after the loss of the YEEZY line and cutting ties with Ye in late 2022, demonstrated resilience and adaptability, driving growth through increased demand for its Samba, Gazelle, Spezial, and Campus franchises. CEO Bjorn Gulden attributed this growth to the popularity of Originals footwear and firm performance in Running, Football, and Basketball products.
Growth Driven by Popularity of Samba, Gazelle, and Other Franchises
Sales from the remaining Yeezy inventory generated approximately EUR 150 million. Footwear revenue rose 13% on a currency-neutral basis, propelled by Originals and Football categories, while apparel sales increased by 2%. However, accessory sales dipped 1% due to decreased sell-in to the wholesale channel in North America.
Financial Performance: Mixed Results Across Regions and Product Categories
Gulden expressed pride in the brand’s swift acceptance and outlined plans to manage franchises and phase products in and out to avoid discounting. Despite positive growth in Europe (up 14%) and Latin America (up 18%), North America saw a 4% decline, primarily from wholesale.
Looking ahead, Gulden emphasized continued investment in product, brand, sales, and marketing for sustained growth, prioritizing long-term success over short-term profit optimization.
