Income Statement

Acceleration to double-digit revenue growth in 2024

In euro terms, revenues increased 11% to € 23,683 million in 2024 (2023: € 21,427 million). On a currency-neutral basis, revenues were up 12% compared to the prior year. The double-digit growth was driven by the strong momentum of the adidas brand. Excluding Yeezy sales in both years, currency-neutral revenues of the underlying adidas business increased 13% in 2024. The sale of the remaining Yeezy inventory, which was successfully concluded during the fourth quarter, generated revenues of around € 650 million in the year (2023: around € 750 million).

Net sales € in millions

Currency-neutral net sales increased strong double digits in Europe, Emerging Markets and Latin America. In addition, both Japan/South Korea and Greater China also increased at a double-digit rate. North America recorded a low-single-digit decline as the company continued its conservative sell-in approach to the wholesale channel in response to still elevated inventory levels in this market, particularly in the first half of the year, as well as due to lower Yeezy sales. With those anticipated headwinds moderating sequentially, revenue growth in North America accelerated to a double-digit rate in the fourth quarter. SEE BUSINESS PERFORMANCE BY SEGMENT

Footwear-led growth reflecting strong brand and product momentum

Footwear led the company’s growth with an increase of 17%, driven by a strong and locally-relevant product offering that resonates with consumers. Next to additional newness and depth for its iconic Samba, Gazelle, Handball Spezial, and Campus products, the company introduced and started to scale volumes in Retro Running with the SL72 and incubated franchises in the Low Profile domain, such as Taekwondo and Japan. Alongside the strong Originals range, an improved footwear offering in Sportswear served consumer needs across a wider range of price points. In Football, adidas drove strong growth through the latest iterations of the iconic Predator boots as well as the revamped F50 franchise. In Running, the company started to leverage the credibility of its record-breaking Adizero running shoe family into its newly launched Ultraboost 5, Supernova and Adistar franchises developed for everyday runners. Lastly, adidas benefited from increased demand for its basketball signature shoe models, led by Anthony Edwards’ award-winning AE1.

Apparel revenues grew 6% as the company continued to broaden its brand and product momentum. In addition to growth in its football performance kit business, the company successfully launched retro-inspired third jerseys and a range of other products featuring the iconic Trefoil logo, as part of its strategy to create a bigger football lifestyle business. Apparel revenues in Originals increased on the back of new offerings such as the Firebird range, while Sportswear introduced completely revamped apparel collections, such as the innovative Z.N.E. range. Accessories and gear sales were up 2%.

Momentum broadening across categories

The broad-based demand for adidas products was also evident from an overall category perspective. Currency-neutral revenues in Lifestyle and Performance increased at a double-digit and high-single-digit rate, respectively. In Lifestyle, Originals led the growth with a strong double-digit increase, while Sportswear was up mid-single digits. On the Performance side, double-digit growth in Football stood out among several categories that posted increases, including Running and Training.

Balanced growth across all channels

On a currency-neutral basis, wholesale revenues increased 14% as relationships with retail partners further strengthened, while direct-to-consumer (DTC) sales grew 11%. Within DTC, own retail posted growth of 15% versus the prior year, driven by the strong sell-out rates in the company’s concept store fleet, while e-commerce revenues increased 6%. The continued focus on reducing discounting activity and improving the overall business mix on own online platforms pared back much stronger growth in e_‑commerce full-price sales. In addition, lower Yeezy sales weighed significantly on e-commerce growth.

Cost of sales increase moderately

Cost of sales is defined as the amount paid to third parties for expenses associated with producing and delivering adidas products. In addition, own-production expenses are also included in the cost of sales. However, these expenses represent only a very small portion of total cost of sales. In 2024, cost of sales was € 11,658 million, representing an increase of 4% compared to the prior year level of € 11,244 million. This development reflects the company’s growth as well as less favorable currency rates, partly offset by lower freight and product costs.

Gross margin up significantly to 50.8%

In 2024, gross profit increased 18% to € 12,026 million from € 10,184 million in 2023, while gross margin increased 3.3 percentage points to 50.8% (2023: 47.5%). The improvement was mainly driven by lower freight and product costs, a more favorable business mix, and reduced discounting. In contrast, negative currency effects weighed significantly on the gross margin, particularly in the first half of the year.

Gross margin¹ in %

Royalties and other operating income

Royalty and commission income was relatively flat at € 81 million in 2024 (2023: € 83 million), while other operating income was up 144% to € 174 million from € 71 million in 2023. The increase in other operating income mainly reflects the release of prior year’s accruals in the third quarter of 2024 in an amount of around € 100 million following the Yeezy settlement. This was offset by provisions in a similar amount for further donations, which were recorded within operating overhead expenses.

Other operating expenses growing slower than revenues

Other operating expenses, including depreciation and amortization, mainly consist of marketing and point-of-sale, distribution and selling, as well as general and administration expenses. In 2024, other operating expenses were up 9% to € 10,945 million (2023: € 10,070 million). As a percentage of sales, other operating expenses decreased 0.8 percentage points to 46.2% from 47.0% in 2023.

Marketing and point-of-sale expenses increased 12% to € 2,841 million in 2024 (2023: € 2,528 million). The company continued its marketing investments to support its global brand campaign ‘You Got This’ and large-scale activations around the UEFA EURO 2024, the CONMEBOL Copa América, the Olympic and Paralympic Games Paris 2024, as well as support for new product launches such as the Supernova running franchise or the Z.N.E. apparel range. Furthermore, adidas broadened its portfolio of sports partners, with new additions such as the French Rugby Federation, Texas Tech University, and the Ukrainian Association of Football, or individual athletes like Aitana Bonmatí, Lamine Yamal, and Travis Hunter. As a percentage of sales, marketing and point-of-sale expenses increased 0.2 percentage points to 12.0% (2023: 11.8%).

Operating overhead expenses increased 7% to € 8,103 million (2023: € 7,541 million). This development reflects ongoing investments aimed at strengthening the company’s sales activities and increasing its agility. In addition, operating overhead expenses include provisions for further donations in an amount of around € 100 million. As a percentage of sales, operating overhead expenses decreased 1.0 percentage point to 34.2% from 35.2% in 2023. Within operating overhead expenses, distribution and selling expenses increased 7% to € 5,936 million in 2024 from € 5,547 million in the prior year. As a percentage of sales, distribution and selling expenses decreased 0.8 percentage points to 25.1% from 25.9% in 2023. General and administration expenses were up 16% to € 2,138 million (2023: € 1,839 million). As a percentage of sales, general and administration expenses were up 0.4 percentage points to 9.0% (2023: 8.6%). SEE NOTE 30

Other operating expenses in % of net sales

Marketing and point-of-sale expenses in % of net sales

EBITDA increases strongly

Earnings before interest, taxes, depreciation, and amortization, as well as impairment losses/reversal of impairment losses on property, plant, and equipment; right-of-use; and intangible assets (EBITDA) increased 81% to € 2,465 million in 2024 versus € 1,358 million in 2023. Total depreciation and amortization as well as impairment losses/reversal of impairment losses for tangible, right-of-use, and intangible assets was relatively flat at € 1,180 million in 2024 (2023: € 1,170 million).

EBITDA¹ € in millions

Operating margin reaches 5.6%

Operating profit increased 398%, or more than € 1 billion in absolute terms, to € 1,337 million in 2024 versus € 268 million in 2023. The sale of the remaining Yeezy inventory in the course of 2024 contributed around € 200 million to operating profit. This compares to a profit contribution from Yeezy of around € 300 million in the prior year. The operating margin was 5.6% in 2024, 4.4 percentage points above the prior-year level (2023: 1.3%).

Operating profit € in millions

Operating margin¹ in %

Net financial result stable while tax rate normalizes

Financial income increased 28% to € 101 million in 2024 (2023: € 79 million), mainly reflecting higher interest income. Financial expenses were up 12% to € 317 million compared to € 282 million in 2023, mainly reflecting higher financing costs in some markets, partly offset by lower negative effects related to hyperinflation countries. As a result, the company’s net financial result was relatively stable at negative € 215 million (2023: negative € 203 million). The company’s tax rate decreased to 26.5% in 2024 (2023: 189.2%), reflecting the normalization of profitability levels throughout the year. SEE NOTE 32 SEE NOTE 34

Net income from continuing operations increases to € 824 million

Driven by significant business improvements in 2024, net income from continuing operations improved strongly to € 824 million (2023: net loss of € 58 million). Taking into consideration € 68 million of net income attributable to non-controlling interests (2023: € 61 million), both basic and diluted earnings per share (EPS) from continuing operations reached € 4.24 (2023: negative € 0.67). The total number of shares outstanding was unchanged at 178,549,084 at the end of 2024. Consequently, the average number of shares used in the calculation of basic earnings per share (EPS) was also 178,549,084 (2023: 178,543,596).

Net income/(loss) from continuing operations € in millions

Basic earnings per share in €

Gains from discontinued operations

In 2024, adidas incurred gains from discontinued operations of € 8 million, net of tax, related to the Reebok divestiture (2023: € 44 million). SEE NOTE 03

Net income attributable to shareholders of € 764 million

The company’s net income attributable to shareholders, which, in addition to the net income from continuing operations, considers the gains from discontinued operations as well as net income attributable to non-controlling interests, amounted to € 764 million in 2024 (2023: net loss of € 75 million). As a result, both basic and diluted EPS from continuing and discontinued operations were € 4.28 in 2024 versus negative € 0.42 in 2023.