Adidas' first-quarter profit increase and improved outlook lead to a 6% share price rise.

• On Wednesday, Adidas' shares rose 6.3% after the company announced an increase in its full-year guidance and reported a year-on-year profit increase in the first quarter.
• The company increased its full-year revenue and operating profit projections based on the outcomes.

On Wednesday, Adidas' shares rose 6.3% after the company announced an increase in its full-year guidance and reported a year-on-year profit increase in the first quarter.

The German sportswear company anticipates a mid-to high-single-digit increase in currency-neutral revenues in full-year 2024, compared to a previous projection of growth near a mid-single-digit rate.

Adidas has updated its trading statement and now predicts an operating profit of approximately 700 million euros ($745 million) for the year, up from its previous forecast of around 500 million euros.

Since parting ways with Ye, the rapper formerly known as Kanye West, Adidas has been selling off its loss-making Yeezy inventory. The company anticipates that the sale of the remaining Yeezy inventory during the rest of the year will bring in additional sales of approximately 200 million euros.

Preliminary figures indicate that the company's first-quarter operating profit increased to 336 million euros from 60 million in the same quarter of the previous year.

Adidas anticipates that unfavorable currency effects will have a "significant" impact on its profitability this year, affecting both its reported revenues and gross margin development, as stated in its report.

In 2023, Adidas experienced a transition year due to the loss of revenue from Yeezy sales. CEO Bjørn Gulden predicted some growth in the first quarter, which will continue to strengthen in the second half of the year.

The company aims to increase its sales through collaborations with the Olympics, Paralympics, EURO 24, and Copa events this year.