German sportswear giant Adidas on Tuesday raised its guidance for 2024, as it performed "better than expected" over the first three months of the year following a period marred by struggles, AFP reported.
Adidas's revenues between January and March 2024 rose four percent from a year earlier to 5.5 billion euros ($5.8 billion), according to preliminary figures.
The outfitter saw its first-quarter operating profit rise to 336 million euros from 60 million euros in 2023.
The figure -- closely watched by analysts as a measure of underlying performance -- was now expected to come in at around 700 million euros for the year, up from 500 million euros.
The improved outlook came "as a result of the better-than-expected performance during the (first) quarter," Adidas said in a statement.
The group also raided its revenue guidance, aiming for an increase in the "mid- to high-single-digit" range in 2024, up from a lower "mid-single-digit" target.
The improved outlook will provide some comfort to managers at Adidas, which in 2023 recorded its first annual loss in over 30 years.
The setback came on the back of a costly breakup with the US rapper Kanye West in late 2022 after allegations of anti-Semitism against the artist.
Since then, Adidas has slowly been selling off its inventory of Yeezy products, which were developed with West.
The latest batch to be sold generated revenues of around 150 million euros and an operating profit of 50 million euros, Adidas said.
The remaining stock was expected to be sold off "at cost" over the remainder of 2024, Adidas said, with no further impact on profits.
Since the end to its lucrative collaboration with the rapper, bad news has continued to come for Adidas.
The German national football team surprised the sports world in March when it announced it would switch suppliers to US rival Nike from 2027, ending decades of cooperation with the homegrown "three-stripes" brand. /BGNES