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