Economic and Sector Development
In 2024, adidas continued its turnaround and recorded significantly better-than-expected results against a challenging and volatile macroeconomic backdrop. Revenues increased 12% on a currency-neutral basis as brand momentum accelerated further and broadened across markets and categories. The company’s gross margin improved 3.3 percentage points to 50.8%, while operating profit increased by more than € 1 billion to € 1,337 million in 2024.
Economic and sector development
Global economy stable in 20241
The global economy stabilized in 2024, particularly in the second half of the year, as inflation levels decreased and global central banks cut interest rates. At the same time, geopolitical tensions persisted, and political developments caused further uncertainty. Against this backdrop, consumer sentiment was generally cautious, reflecting concerns over economic stability and discretionary spending power. In this context, global gross domestic product (GDP) grew 2.7% in 2024, the same rate as in the previous year. Growth in advanced economies stagnated at 1.7%, while developing economies continued to outperform with growth of 4.1%. Globally, the risks of heightened political uncertainty and adverse trade policy shifts, a resurgence of inflation, geopolitical tensions, supply chain disruptions, as well as climate-related disasters remain.
Sporting goods industry resilient in 2024
In 2024, the global sporting goods industry proved resilient. In a challenging consumer environment, the overall sector expanded despite concerns over economic stability and discretionary spending power. Although inventories in most markets were back at healthy levels, North America still faced excess stock, particularly in the first half of the year. In other major markets, including Europe and Greater China, macroeconomic conditions weighed on demand, also for sporting goods. On the other hand, consumer excitement was boosted by major sports events during the summer. The industry also continued to benefit from lasting structural trends such as increasing sports participation rates, rising health and fitness awareness, and consumer preferences for high-quality and comfort footwear and apparel. Looking ahead, the sporting goods industry is expected to remain fundamentally attractive. At the same time, it is subject to risks of lower consumer demand due to heightened macroeconomic challenges, adverse tariff schemes, and further geopolitical tensions.
Regional GDP development1,2 in %
2 Source: World Bank as of January 16, 2025.
3 Includes Emerging Europe and Central Asia.
4 Includes East Asia and Pacific.
1 Source: World Bank Global Economic Prospects.