Adidas Q1 revenue grows by 8%, with the Greater China region achieving its “fourth consecutive increase”

Recently, Adidas released its financial report for the first quarter of 2024. The data indicates global revenue of 5.458 billion euros, an 8% year-on-year increase after currency adjustments; operating profit reached 336 million euros, compared to 60 million euros for the same period last year; gross profit margin rose by 6.4% to 51.2% year-on-year, with overall performance exceeding expectations.

As one of Adidas's most strategic markets, the Greater China region achieved revenue of 900 million euros in the first quarter, a year-on-year increase of 8%. This marks the fourth consecutive quarter of growth for Adidas in the Greater China region since the second quarter of 2023.

In other segmented markets, revenue from emerging markets and Latin America also saw double-digit growth, at 17% and 18% respectively. Revenue in Japan and the Republic of Korea increased by 7%, primarily driven by double-digit growth in direct-to-consumer (DTC) channels. Revenue in North America declined by 4%, reflecting a double-digit decrease in wholesale channels.

Adidas Global CEO stated, "I am delighted to see that our business in the first quarter has performed better than expected. Sales, gross margin, and operating profit are all better than initially planned. Our sales through the DTC channel are strong, with retail partners' sell-out exceeding sell-in, meaning reduced inventory with retail partners, fewer discounts, and higher gross margins."

"The demand for footwear products such as Samba, Gazelle, Spezial, and Campus remains robust, driving growth in our sports fashion business, while high-end products in categories such as running, soccer, and basketball perform well. Despite facing certain market challenges, Adidas has made progress in all aspects, with the brand's popularity steadily rising. We are not satisfied with short-term profits and will continue to increase investments in products, brands, and marketing to maintain sustainable growth."