Adidas (OTC:ADDYY) announced its Q1 results and generated sales of €5.5 billion, up by 8% year-over-year on a currency-neutral basis. The company’s sales were driven by its footwear business segment, which grew 13% year-over-year on a currency-neutral basis. Adidas’s footwear sales were driven by the strong brand momentum of its Originals and Football footwear categories.
The German athletic apparel and footwear company reported basic earnings of €0.96 per share, compared to a loss of €0.18 per share in the same period last year.
Adidas’s Revenues Boosted by Yeezy
Adidas’s revenues also received a boost from the sales of its Yeezy inventory, totaling around €150 million during the first quarter. The company has been recovering well since ending its profitable Yeezy partnership with Kanye West, also known as Ye, and reporting a loss in 2023.
Adidas’s FY24 Outlook
In FY24, Adidas expects revenue growth of mid- to high-single digits, up from its prior forecast of mid-single digits, with Yeezy inventory sales adding around €200 million for the year. The company also raised its operating profit forecast to around €700 million, up from its previous projection of €500 million, with a €50 million contribution from the Q1 sales of Yeezy inventory.
Is Adidas a Good Share to Buy?
Analysts remain bullish about ADDYY stock, with a Strong Buy consensus rating based on three Buys and one Hold. Year-to-date, ADDYY has increased by more than 15%, and the average ADDYY price target of $192.29 implies an upside potential of 60.1% from current levels. However, these analyst ratings are likely to change following Adidas’s results.
