New Delhi: Adidas shares rose 8.2 percent after the company raised its full-year guidance and reported a year-on-year profit increase in the first quarter. The German sportswear company now expects currency-neutral revenues to increase at a mid-to-high-single-digit rate in full-year 2024, compared with a previous projection of growth near a mid-single-digit rate. 

Operating profit for the year is expected to reach around 700 million euros ($745 million), compared to a previous forecast of 500 million euros. Adidas has been selling off its loss-making Yeezy inventory since breaking ties with rapper Kanye West. 

The company now expects the sale of the rest of the Yeezy inventory during the remainder of the year to result in additional sales of around 200 million euros. 

The company's first-quarter operating profit rose to 336 million euros, up from 60 million in the same period of last year. Unfavorable currency effects are expected to weigh "significantly" on Adidas' profitability this year and impact both reported revenues and gross margin development.

Adidas underwent a transition year in 2023 after losing revenue from the Yeezy sales. The underlying sales growth from the Yeezy products confirms the "rapidly accelerating momentum" of the Adidas brand. The sportswear company is also seeking a boost from its partnerships with the Olympics, Paralympics, EURO 24, and Copa events this year.

ALSO READ: Gold prices hold steady amidst global tensions and economic outlook