Adidas has reported a significant rise in profits, showcasing a 189% increase compared to 2023’s first half results.
- This sportswear giant achieved an operating profit of €682 million (£575 million) for 2024’s first six months.
- Adidas has also doubled its full-year profit guidance to €1 billion (£840 million).
- Sales growth was particularly strong in Europe and Latin America, with increases of 19% and 33% respectively.
- However, the brand faced controversy regarding a campaign decision involving model Bella Hadid.
Adidas, a leading name in sportswear, has seen its operating profits nearly triple in the first half of 2024, marking a 189% increase compared to the same period last year. This remarkable growth led to an operating profit of €682 million (£575 million), driven by robust performances in various markets.
The brand has revised its profit guidance for the year, now expecting to achieve €1 billion (£840 million) in operating profits, a significant increase from the initial prediction of €500 million (£421 million). This adjustment reflects the company’s confidence in maintaining its upward trajectory.
Adidas has experienced notable success in Europe and Latin America, with sales growth of 19% in Europe and an impressive 33% in Latin America. These figures were bolstered by the brand’s association with major football tournaments, where Adidas sponsored numerous national teams, including champions Spain and Argentina.
CEO Bjørn Gulden expressed excitement about the company’s continued success amid these engagements and looked forward to maintaining interest during the upcoming Paris Olympics.
Despite its financial success, Adidas faced criticism for its handling of a marketing campaign involving model Bella Hadid. The campaign, inspired by the 1972 Munich Olympics, was dropped following backlash relating to the sensitive historical context. In response, Adidas issued an apology acknowledging any upset or distress caused.
Adidas continues to demonstrate financial strength whilst navigating both opportunities and challenges in the global market.
