The following is a summary of the Adidas AG (ADDYY) Q3 2024 Earnings Call Transcript:
Financial Performance:
Adidas AG reported a solid Q3 2024 with a currency-neutral growth of 10.3%, the underlying business excluding YEEZY witnessed even stronger growth at 14%.
Gross profit margin improved significantly to 51.3%, highlighting efficient product costs and reduced discounting levels.
Operating profit reached €598 million, showing a nearly 50% increase compared to the previous year, with an EBIT margin of 9.3%, closely aligning with the company's mid-term goal of 10%.
Business Progress:
Adidas highlighted its strong commitment and connection to sports as evidenced by the support and celebration of athletes and their achievements, such as Patrick Lange's record in IRONMAN and wins in marathon events.
The brand showed robust commercial momentum, driven by its innovative products in footwear such as the Evo shoes.
Adidas is expanding its retail presence globally and in new markets, with initiatives including new 'women-only' stores and flagship stores in prime global locations.
Significant advances were discussed regarding product lines and partnerships in strategic fields like Basketball in the US, enhancing presence and competitiveness.
Opportunities:
The company's growth is accelerated by focus areas such as high-growth markets, sports performance products, and lifestyle portfolios.
Expansion into new geographic territories with both innovative store concepts and strategic franchise partnerships promises new market segment penetrations.
Investments in digital and e-commerce platforms are yielding positive results, particularly in full-price sales metrics.
Risks:
Adidas acknowledges challenges in the North American market, working through inventory and brand perception adjustments to realize potential growth.
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
