A Samba shoe on Oct. 12, 2023, in Berlin, Germany.
Thomas Trutschel | Photothek | Getty Images
Shares in Adidas rose on Wednesday after the company announced it would hike its full year 2024 earnings guidance following better-than-expected preliminary results for the second quarter.
Adidas was last up 4.72% at 8:19 a.m. London time.
The German sportswear company on late Tuesday said it was now expecting its operating profit to reach around 1 billion euros ($1.09 billion) across full-year 2024, up from the previously expected 700 million euros.
Adidas said its revenues rose 11% in the second quarter, compared to the previous year.
Excluding sales of the struggling Yeezy line in both year, currency-neutral revenue rose 16% in the quarter, Adidas noted. Adidas in January announced that it would not write off most of its unsold Yeezy inventory and would instead sell the remaining shoes.
Adidas collaborated with the rapper Ye, formerly known as Kanye West, on the Yeezy line, but cut ties with him after a series of anti-semitic remarks.
“Within its guidance, the company assumes the sale of the remaining Yeezy inventory during the remainder of the year to occur on average at cost. This would result in additional sales of around € 150 million and no further profit contribution during the remainder of the year,” Adidas said Tuesday.
This is a developing story and will be updated.