Adidas 40 gross margin 50.8%
TL;DR
Adidas reported a 50.8% gross margin in 2024, up 3.3 percentage points from 2023, driven by lower costs, a favorable product mix, and reduced discounting. Gross profit rose 18% to €12,026 million, with footwear sales up 17%, contributing to improved profitability.
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Adidas 40 gross margin 50.8%
Adidas Reports 50.8% Gross Margin in 2024, Reflecting Operational Improvements
Adidas AG (ADS) reported a gross profit margin of 50.8% for fiscal year 2024, a significant increase of 3.3 percentage points compared to 47.5% in 2023. This improvement was driven by lower freight and product costs, a more favorable business mix, and reduced discounting activity, despite challenges from adverse currency effects, particularly in the first half of the year.
The company's gross profit rose 18% year-over-year to €12,026 million, supported by a 11% increase in net sales to €23,683 million. Cost of sales, which includes expenses for production and delivery, grew moderately by 4% to €11,658 million. Adidas attributed part of the cost reduction to supply chain optimizations and a shift toward higher-margin product categories, such as footwear and lifestyle offerings.
Footwear remained a key growth driver, with revenues up 17% to €13,975 million, fueled by strong demand for iconic lines like Samba and Ultraboost, as well as new product launches in running and football categories. Apparel and accessories also contributed to the improved margin, with revenues rising 6% and 2%, respectively.
While the company faced headwinds from currency fluctuations—particularly in Europe and emerging markets—it offset some pressures through pricing strategies and a focus on premium products. The sale of remaining Yeezy inventory in late 2024 generated €650 million in revenue but was not a direct factor in the gross margin calculation.
The expanded gross margin contributed to a broader operating margin of 5.6% in 2024, up 4.4 percentage points from 1.3% in 2023, reflecting improved profitability across the business. Analysts note that Adidas's focus on cost discipline and product innovation has strengthened its financial resilience, though ongoing macroeconomic uncertainties could test sustainability in future periods.
Adidas Annual Report 2024, Income Statement and Business Performance Sections
