ADDDF - Adidas AG (ADDYY) Q1 2024 Earnings Call Transcript
2024-04-30 19:00:10 ET
Adidas AG (ADDYY)
Q1 2024 Earnings Conference Call
April 30, 2024, 09:00 ET
Company Participants
Sebastian Steffen - SVP, IR
Bjorn Gulden - CEO
Harm Ohlmeyer - CFO
Conference Call Participants
Piral Dadhania - RBC Capital Markets
Zuzanna Pusz - UBS
Edouard Aubin - Morgan Stanley
Monique Pollard - Citigroup
Cedric Lecasble - Stifel, Nicolaus & Company
Aneesha Sherman - Sanford C. Bernstein & Co.
Jurgen Kolb - Kepler Cheuvreux
Jonathan Komp - Robert W. Baird & Co.
Geoff Lowery - Redburn
Aurélie Husson-Dumoutier - HSBC
Warwick Okines - BNP Paribas Exane
Presentation
Operator
Ladies and gentlemen, welcome to the adidas AG Q1 2024 Conference Call and Live Webcast. I am Alice the chorus call operator. [Operator Instructions]. The conference will be recorded for publication or webcast. At this time it is my pleasure to hand over to Sebastian Steffen, Head of Investor Relations. Please go ahead, sir.
Sebastian Steffen
Thanks very much, Alice. Hello, everyone, from sunny Herzogenaurach. Welcome to our Q1 2024 Results Conference Call.
Our presenters today are our CEO, Bjorn Gulden; and our CFO, Harm Ohlmeyer. Before Bjorn and Harm will take you through the puts and takes of the quarter and explain our expectations for the rest of the year, [Operator Instructions]. And now, without any further ado, over to you, Bjorn.
Bjorn Gulden
Thanks, and hello, everybody. I hope you're all in good shape and good mood. I think the picture on the screen is an important one. It shows both the men and the female team of Real Madrid, playing in the Y-3 Yamamoto design, and I think that mirrors a little bit of what we are trying to do to merge lifestyle and sport [indiscernible] And of course, tonight is a special night with Bayern playing Real and I hope you'll all cheer for the Bayern because that's where we are a shareholder as you know.
You saw all the numbers already a couple of weeks ago, where we went out to [indiscernible] and you know we went out to [indiscernible] because the year has actually started better than we had expected and we'll try to take you through the story why and then get a little bit more into the details for now.
Our same store for currency neutral, up 8%. We should take the Yeezy business out which was €150 million, it's around 5% up. And that is stronger than what we had expected given the order book where we were at the beginning of the year. That was positive, but what was even more positive was that the gross margin reached 51.2%, up 640 basis points. And again, I think everything that we had an impact of was positive. And the only negative thing was, of course, the currency, which is still pulling off in the wrong direction.
The Yeezy effect on the gross margin is about 70 basis points. So that tells you that the underlying adidas gross margin is already above 50%. And as you know, that is very important for us to get to the profitability that we want midterm. If you put that all together, we then had an operating profit of €336 million. That's up from €60 million a year ago. And the same thing here, the contribution from Yeezy on the profit line was a little bit less than €50 million. So it shows you that the underlying adidas contribution is then around €290 million. ...
Adidas AG (ADDYY) Q1 2024 Earnings Call Transcript