By Helen Reid and Linda Pasquini (Reuters) -Adidas forecast on Wednesday its sales would slow slightly from a strong 2024 and grow less than 10% this year, sending shares of the sportswear brand lower in early trading. Under CEO Bjorn Gulden, Adidas has repeatedly delivered stronger results than forecast each quarter, but its shares were […]
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Adidas sees sales growth slowing this year, sending shares lower
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By Helen Reid and Linda Pasquini
(Reuters) -Adidas forecast on Wednesday its sales would slow slightly from a strong 2024 and grow less than 10% this year, sending shares of the sportswear brand lower in early trading.
Under CEO Bjorn Gulden, Adidas has repeatedly delivered stronger results than forecast each quarter, but its shares were seen down nearly 4% in premarket indications in a sign the cautious outlook disappointed the market.
Its operating profit forecast was also lower than expected, with Adidas saying it should reach a level between 1.7 billion euros and 1.8 billion euros ($1.8 billion and $1.9 billion) this year, below 2.1 billion euros analysts had expected.
Adidas, which has been gaining market share while Nike struggles, has the “clear ambition” of being the top sportswear brand in all markets except the United States, Gulden said in a statement in the annual report, also published Wednesday.
It expects annual revenues to increase at a high single-digit rate in currency-neutral terms, lower than the 12% growth it delivered last year.
“A significantly better, broader, and deeper product range combined with an increased focus on local consumer preferences as well as much improved retailer relationships will be the main drivers of the projected top-line increase,” Adidas said in a statement.
The outlook does not include any revenues or profits from its Yeezy line, as the company sold its remaining items in the fourth quarter, and adjusted for that sales growth is expected to top 10% this year, Adidas said.
The German brand is looking for new sources of growth beyond its popular retro sneakers Samba and Gazelle, as it seeks to take further market share from its struggling U.S. rival Nike while also fending off newer sportswear brands, such as On Running and Hoka
In the key holiday shopping quarter, Adidas sales grew by 15% in North America, 25% in Europe, 31% in Latin America, and 16% in Greater China.
Adidas expects North America and Greater China, among others, to deliver double-digit rate growth in brand sales in the current year.
($1 = 0.9411 euros)
(Reporting by Helen Reid and Alexander Huebner, writing by Linda Pasquini; Editing by Miranda Murray, Tom Hogue and Tomasz Janowski)