BERLIN (dpa-AFX) - Sportswear maker adidas AG (ADDYY.PK) reported that its third quarter preliminary operating profit increased to 598 million euros from 409 million euros in the prior year. The latest-quarter result included a contribution of around 50 million euros from the sale of parts of the remaining Yeezy inventory.
Quarterly currency-neutral revenues increased 10% from the prior year. In euro, terms, the company's revenues grew about 7% to 6.438 billion euros from last year's 5.999 billion euros. Excluding Yeezy sales in both years, currency-neutral revenues increased 14% during the quarter.
The company increased its full-year guidance to reflect the better-than-expected performance during the quarter and the current brand momentum.
adidas now expects currency-neutral revenues to increase at a rate of around 10% in 2024. Previously it was expected to increase at a high-single-digit rate. The company now expects annual operating profit to reach a level of around 1.2 billion euros compared to the prior estimation of around 1.0 billion euros.
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 50 million euros and no further profit contribution in the fourth quarter.
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