Sales for the German sportswear giant adidas has seen a revenue increase of 11% to €5.82 billion EUR in its second fiscal quarter. Sales at adidas had an uptick of 16% during the three-month period, showing signs of the brand gaining momentum, raising its guidance for full-year sales. Already reporting a raise in full-year guidance in early July, adidas saw another increase at a “high single-digit rate” for the full year, bringing the company’s sales in the first half up to €11.28 billion EUR, which at constant exchange rates, increased 10% year-on-year.
CEO Bjørn Gulden confirms signs of growth and improvement, saying that the company is “on the way to becoming a good, healthy company. The improved brand momentum with our consumer happened faster than we had expected.” Revenues in their home market of Europe saw an increase in 19.4% while growth in Asia in Greater China, Japan and South Korea, followed suit. In its Emerging Markets, the revenues increased by 24.6% in Q2 to €749 million EUR.
In North America, the result was less favorable, with sales declining 7.7%. The company attributed the decrease to the end of its highly profitable partnership with YEEZY back in 2022. While that is the case, adidas still plans to sell the remainder of its YEEZY inventory. The remainder €150 million EUR worth of products are slated to be sold by the end of the year. Footwear sales for adidas increased by 17% while apparel only had an uptick of 6%. Apparel’s increase has been attributed to the recent football trends leading to the growth of replica jersey sales across Europe and Latin America.
Other notable collaborations that have been making a splash with adidas recently are the Wales Bonner Sambas taking the footwear industry by storm. Consistently part of Hypebeast’s best footwear trends during fashion week for multiple seasons in a row, the show collaboration remains one of the most sought after from both fashion and footwear aficionados. Recently, adidas Fear of God Athletics by Jerry Lorenzo has been making a return to the markets, sparking interest to the brand. It remains to be seen how these collaborations will affect adidas’ growth in the future.
Recently, adidas found itself in hot waters after releasing a controversial campaign with Bella Hadid over the revival of the SL72. Currently receiving backlash by fans, it will also remain to be seen if this will affect the bottom line.
