Adidas AG (OTC:ADDYY) reported preliminary results for the first quarter of 2024, with an 8% increase in currency-neutral revenues. In euro terms, revenues grew 4% to €5.458 billion in the quarter.

The company's gross margin improved 6.4% points to 51.2% during the quarter compared to 44.8% last year.

Operating profit marked a significant jump to €336 million from €60 million last year.

The latest Yeezy drop generated revenues of around €150 million and an operating profit of around €50 million in the first quarter.

The remaining Yeezy inventory would lead to additional sales of about € 200 million and no further profit contribution during the remainder of the year.

Guidance: Adidas increased its full year revenue guidance and sees currency-neutral revenues to increase at a mid- to high-single-digit rate in 2024 from the previous mid-single-digit rate growth.

The German footwear maker also increased its operating profit guidance to around €700 million from around €500 million.

Adidas expects unfavorable currency effects to weigh significantly on its profitability in 2024.

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