Adidas shoes are on display at the DSW store on January 31, 2024 in Novato, California.
Justin Sullivan | Getty Images
Adidas shares jumped 6.3% on Wednesday after the company unexpectedly raised its full-year guidance and reported a year-over-year profit increase in the first quarter.
The German sportswear company said it now expects currency-neutral revenue to grow at a mid- to high-single-digit rate in all of 2024, compared to previous expectations of growth near a mid-single-digit rate.
Operating profit for the year is now expected to be about 700 million euros ($745 million), Adidas said in its unscheduled trading update published late Thursday. It previously expected operating profits to reach about 500 million euros.
Adidas has been selling off its Yeezy stock since cutting ties with rapper Ye, formerly known as Kanye West. The company said it now expects the sale of the rest of Yeezy inventory over the remainder of the year to result in additional sales of around €200 million.
The company also said its first-quarter operating profit rose to 336 million euros, up from 60 million in the same period last year, according to preliminary figures.
This breaking news story is being updated.
