By Andrea Figueras

Adidas is scheduled to report results for the fourth quarter on Wednesday. Here is what you need to know:

NET PROFIT FORECAST: The German sporting-goods company is expected to report a net loss of 29.5 million euros ($30.9 million) for the final quarter of 2024, according to a poll of estimates by 11 analysts compiled by Visible Alpha. In the prior year-period, the group booked net profit of 379 million euros.

Shares have jumped nearly 31% over the past 12 months and are up around 1.7% since the start of the year.

WHAT TO WATCH:

-- OUTLOOK: The company, which published preliminary results in January, plans to issue its financial targets for 2025, which will likely be on focus. Last year, the group issued a guidance that disappointed investors, following the usual conservative approach of Chief Executive Bjorn Gulden, who has in the past managed expectations to be in a position to beat and raise later in the year.

-- U.S. TARIFFS: Another topic of interest will be any comments from management regarding the implementation of tariffs in the U.S. on imported products. Brands could increase prices in the U.S. to offset higher tariffs on imports from China, JPMorgan analysts said in a note. However, a low level of price rises would be needed for Adidas to maintain the same level of absolute gross profit after tariffs, as it has mostly limited sourcing exposure to China, while sourcing from Mexico and Canada is minimal, they said.

-- U.S. MARKET: The company looks set to outperform in the U.S., a key market for sporting-goods companies, UBS analysts said in a note. Moreover, Adidas should be able to gain shelf space with the wholesalers amid continuing weakness of its main rival Nike, UBS said. The U.S. giant is in the midst of a brand turnaround plan.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

March 04, 2025 04:54 ET (09:54 GMT)

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