The analyst conference of Adidas ($ADS (-10,97%) ) highlighted a successful 2024 and provided insights into the strategic priorities and financial targets for 2025 and beyond.
CEO Bjørn Gulden began by highlighting the importance of sport to the Adidas brand and emphasized that 2024 had been a year of revival, supported by major events such as the EURO and COPA . He was particularly proud of the success in soccer, including jersey sales during the EURO in Germany. The Special Olympics were also highlighted as a special, emotional highlight that reflects Adidas' values.
Gulden also presented the top shoe models of the yearfirst and foremost the "Terrace" shoes such as Samba, Gazelle and Spezial, which have contributed significantly to the brand's appeal. He hinted that "low profile shoes and lifestyle running models will gain in importance in the future. In addition, the importance of lifestyle running was also emphasized. The scaling of the Superstar model is also to be driven forward. Also worth mentioning is the cooperation with the Formula 1 team from Mercedes-AMG PETRONAS.
CFO Harm Ohlmeyer supplemented the presentation with detailed insights into the financial figures. He emphasized the strong sales growth of 12 % and the improved gross margin of 50.8 %. Particular emphasis was placed on the 400 % increase in operating profit to EUR 1.337 billion was particularly emphasized.. Ohlmeyer also referred to the the gradual increase in sales forecasts over the course of the year and emphasized that Adidas had exceeded its promises.
In the Q&A section that followed, the analysts had the opportunity to ask specific questions. Here is a summary of the most important points:
Wholesale: One analyst asked about possible pull-forward effects in the wholesale channel in Q4 and their impact on Q1 2025. Gulden denied this and emphasized that the strong strong growth was based on actual orders and reorders. Regarding the wholesale figures in Europe he was optimistic, but conceded that many retailers are struggling with volatile demand.
Share buybackAnother focus was on the prospect of a prospect of a share buyback. Ohlmeyer made it clear that the priority was investment in the operating businessfollowed by the dividend payment. A share buyback will 2026 at the earliest at the earliest if the economic situation normalizes.
Competitive environmentGulden expressed his relaxed about the competition and sees no immediate threats. However, he conceded that the development of inflation and the retail market in the USA harbor uncertainties.
Gross margin: One analyst wanted to clarify the gross margin for 2025 estimate. Ohlmeyer emphasized that currency fluctuations play a role, but was confident confident of exceeding the 2024 margin (50.8%).
Terrace shoes: There was great interest in the "Terrace" shoe collection. Gulden explained that the models Special, Gazelle and Samba models are in different phases of the market and therefore are not managed globally, but on a market-specific basis. He emphasized that Adidas is in a position to fill the Adidas is able to fill the shelves with a wide range of classic and running shoes.
Marketing model: Gulden confirmed the target of investing 12 % of sales in marketingbut emphasized the importance of investing in smaller sportsto promote brand brand credibility and innovation.
SG&A costs: One analyst discussed the SG&A costs (selling, general and administrative costs) and asked whether savings were possible. Gulden confirmed that that there would be a stronger focus on efficiency and cost reduction in future. would take place. Ohlmeyer added that the one-off costs of EUR 200 million from 2024 would not be repeated and that the reduction in complexity in the company would lead to further savings. will lead to further savings.
USA business: Gulden confirmed the goal of achieving double-digit growth in the USA. However, he conceded that the market a particular challenge due to the strong competition.
Production flexibility: In response to the question of production flexibility Gulden replied that Adidas was able to increase its footwear production by 45% last year. Thanks to the good relationships with suppliers, a high degree of flexibility is given.
Full price sell-through: One analyst asked about the full price sell-through (selling at full price) and the potential for further improvements. Gulden could not give exact figures, but emphasized that Adidas had more than halved its discounts in its own channels.
Outlook Q1 2025: In conclusion, after the start of business in the first quarter of 2025 was asked. Gulden confirmed that the double-digit growth so far so far. However, Ohlmeyer pointed out that in March last year that Yeezy products were still being sold in March last yearwhich makes the comparison more difficult.
The Adidas analyst conference conveyed a positive picture of the company. The strategic realignment seems to be bearing fruit and the financial performance has improved significantly. I was particularly impressed by the the clear focus on the Adidas brand, the strengthening of the sports segment and the successful implementation of the "Terrace" strategy.
