What: Adidas ups profit forecast to £1bn as Samba and Gazelles soar.

Why it is important: It highlights Adidas' financial recovery and growth, driven by popular products and strategic management despite challenges from its split with Ye.

Adidas has raised its full-year financial guidance for the third time this year, following a strong third quarter driven by the success of its Samba and Gazelle trainers. The company reported a 46% increase in operating profit, rising from GBP 342 million (EUR 409 million) to GBP 500 million (EUR 598 million), which included a contribution of GBP 41.8 million (EUR 50 million) from the sale of parts of its remaining Yeezy inventory. Sales also saw a 7% growth, reaching GBP 5.39 billion (EUR 6.44 billion), prompting Adidas to revise its full-year operating profit forecast to GBP 1 billion (EUR 1.2 billion), up from GBP 837 million (EUR 1 billion).

This financial improvement comes amid a broader turnaround effort led by CEO Bjørn Gulden, who has been steering the company following its split with rapper Ye, formerly known as Kanye West, which left Adidas with £1 billion worth of unsold Yeezy shoes. While sales of the remaining Yeezy inventory are expected to contribute GBP 41.8 million, the company does not anticipate any additional profit from these sales in the fourth quarter. Adidas now forecasts currency-neutral sales growth of around 10%, a slight increase from its previous high-single-digit expectation.

Adidas ups profit forecast to GBP 1bn as Samba and Gazelles soar