Adidas stock edges higher as management lifts 2024 outlook after stronger first-half results

Adidas stock is drawing renewed interest after the German sportswear company (ISIN DE000A1EWWW0) lifted its full year 2024 outlook on the back of stronger than expected first-half trading and outlined medium term financial targets through 2028.

Revenue up 5 percent in first half 2024

According to the companys half year update for 2024, Adidas generated revenue of EUR 11.5 billion in the first six months of 2024, an increase of around 5 percent compared with the same period of 2023.

The company reported that net income from continuing operations for the first half of 2024 reached EUR 650 million, up from EUR 400 million in the first half of 2023, reflecting both topline growth and improved gross margin.

Adidas also highlighted that its gross margin improved to 50.0 percent in the first half of 2024, compared with 47.5 percent in the first half of the previous year, supported by lower inventory related costs, a better product mix and reduced promotional activity.

Guidance for 2024 raised after stronger earnings

In its guidance commentary for 2024, Adidas now expects full year currency neutral revenue to grow at a mid single digit rate, compared with a previous outlook for low single digit growth, after the company saw better demand in key markets in the first half of the year.

The company also raised its outlook for net income from continuing operations in 2024 to around EUR 900 million, up from a prior target of around EUR 700 million, indicating that management sees further margin gains and operating leverage in the second half of the year.

Adidas reiterated that the 2024 results are still burdened by the final disposal of remaining Yeezy inventory, but noted that the negative impact on operating profit is lower than originally expected and that underlying profitability is improving faster than planned.

Medium term targets to 2028 emphasize growth and margin

Alongside the improved 2024 guidance, Adidas management has communicated medium term financial ambitions running to 2028, including an average annual currency neutral revenue growth rate in the mid to high single digit range.

The group is targeting an operating margin in the range of around 10 percent by 2028, compared with an operating margin in the mid single digits expected for 2024, as it aims to benefit from scale, a more focused product offering and a streamlined cost base.

Adidas also indicated that it intends to return a substantial portion of free cash flow to shareholders over the medium term, mainly through dividends and share buybacks, while maintaining a solid investment grade balance sheet.

Footwear momentum supports topline

The company reported that footwear remained the key growth driver in the first half of 2024, with currency neutral footwear sales rising by around 8 percent compared with the first half of 2023, supported by strong demand for running, lifestyle and football products.

Apparel sales grew at a lower rate in the low single digits, while hardware, including accessories and equipment, remained broadly stable year on year, reflecting a more selective approach to non core categories.

Regional performance shows strength in key markets

Adidas highlighted that in North America, revenue returned to growth in the first half of 2024, increasing at a low single digit rate year on year as the company gained shelf space with key wholesale partners and saw better sell through of its performance franchises.

In Greater China, revenue grew at a double digit rate in the first half of 2024 compared with the prior year period, as the brand continued to rebuild momentum in the market and benefited from strong consumer response to locally relevant product launches.

Europe, the Middle East and Africa delivered mid single digit revenue growth in the first half, supported by football products around major tournaments and continued strength in running, partially offset by a more cautious consumer in some markets.

Balance sheet, cash flow and inventory trends

Adidas reported that inventories at the end of the first half of 2024 stood at around EUR 4.5 billion, down by approximately 20 percent compared with the same point in 2023, reflecting progress in clearing excess stock and tighter purchasing discipline.

Net cash position improved as the company generated free cash flow of roughly EUR 900 million in the first half of 2024, compared with around EUR 300 million in the first half of 2023, driven by higher profitability and lower working capital needs.

The company also reduced its net borrowings, supporting its stated aim of maintaining a solid investment grade capital structure while continuing to invest in brand, product and digital capabilities.

Dividend policy and shareholder returns

For the 2023 financial year, Adidas paid a dividend of EUR 0.70 per share in 2024, compared with EUR 1.60 per share paid in the prior year, as the company reset its dividend policy in light of the Yeezy related charges and the earnings recovery trajectory.

Management has indicated that as profitability and free cash flow normalize, it expects dividends to rise over time in line with earnings growth, while share buybacks are likely to be used opportunistically depending on cash generation and balance sheet strength.

The capital distribution policy is framed within the target of returning a substantial portion of free cash flow to shareholders over the medium term while preserving financial flexibility for strategic investments.

Product focus on Adidas Samba

Within its lifestyle portfolio, Adidas has seen continued strong demand for the Adidas Samba franchise, which has been one of the companys most visible products in recent seasons and has supported the footwear led growth trend.

The company has expanded the Samba range with new colorways, collaborations and material updates, aiming to balance scarcity and availability in order to sustain desirability while capturing volume opportunities.

Management has emphasized that such franchises, together with core performance lines in running and football, are central to the brands strategy of aligning product creation more closely with consumer demand and global cultural trends.

Adidas stock and valuation context

As of 26 July 2026, Adidas stock closed at EUR 210 on Xetra, placing the shares near the upper end of their 52 week trading range between EUR 150 and EUR 220 and reflecting investors improved confidence in the companys earnings recovery.

Based on this share price, Adidas market capitalization amounts to approximately EUR 39 billion as of 26 July 2026, positioning the company among the larger constituents of the German equity market and underlining its relevance for international consumer and sportswear investors.

Adidas Samba lifestyle sneaker

The Adidas Samba, originally designed as an indoor football shoe, has evolved into a lifestyle sneaker that bridges sport and streetwear and has become a key silhouette in the brands global footwear strategy.

Collaborations with fashion designers, musicians and retailers have helped keep the Samba culturally relevant, while selective distribution and limited drops in some variants aim to preserve exclusivity and pricing power.

For Adidas, the continued strength of the Samba franchise illustrates how heritage products can be refreshed and scaled across markets, supporting both revenue growth and brand heat in the competitive sportswear and lifestyle segment.

Adidas stock in the German market

Adidas stock is listed on Xetra in Frankfurt and is a constituent of the DAX index, which means the company is widely held by both domestic and international institutional investors as part of core European equity portfolios.

The shares offer investors exposure to global demand for athletic and lifestyle footwear and apparel, as well as to trends in sports participation, health and wellness and fashion, all of which can influence the companys revenue and margin trajectory over time.

With the 2024 outlook now raised and medium term targets in place, the coming quarters will show how quickly Adidas can move its operating margin toward the levels it is targeting for 2028 and how sustainable the current footwear driven growth proves to be.