BERLIN (dpa-AFX) - Sportswear maker adidas AG (ADDYY.PK) reported that its first quarter preliminary operating profit climbed to 336 million euros from 60 million euros in the prior year.
Quarterly currency-neutral revenues increased 8% from the prior year level. In euro terms, the company's revenues grew 4% to 5.458 billion euros from the prior year.
The company has increased its full-year guidance, as a result of the better-than-expected performance during the quarter.
adidas now expects currency-neutral revenues to increase at a mid- to high-single-digit rate in 2024. Previously it was expected to increase at a mid-single-digit rate.
The company expects annual operating profit to reach a level of around 700 million euros. Previously, it was expected to reach a level of around 500 million euros.
The latest Yeezy drop generated revenues of around 150 million euros and an operating profit of around 50 million euros in the first quarter.
In 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 200 million euros and no further profit contribution during the remainder of the year.
The company continues to expect unfavorable currency effects to weigh significantly on the company's profitability this year. The effects are projected to continue to negatively impact both reported revenues and the gross margin development in 2024.
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