Adidas shoes are on display at a DSW store on January 31, 2024 in Novato, California.
Justin Sullivan | Getty Images
Adidas shares rose 6.3% on Wednesday after the company unexpectedly raised its full-year guidance and reported a year-on-year increase in first-quarter profit.
The German sportswear company said it now expects full-year (currency-neutral) revenue in 2024 to grow at a mid- to high-single-digit rate, compared with its previous forecast of growth closer to the mid-single digits.
Adidas said in an update on unplanned transactions late Thursday that it now expects operating profit to reach about 700 million euros ($745 million) this year. It had previously expected operating profit to be close to 500 million euros.
Adidas has been selling off its Yeezy inventory since severing ties with rapper Ye (born Kanye West). The company said it now expects to generate approximately 200 million euros in additional sales from the sale of remaining Yeezy inventory during the remainder of the year.
The company also said preliminary data showed operating profit increased to 336 million euros in the first quarter from 60 million euros in the same period last year.
This breaking news story is being updated.
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