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adidas FOR IMMEDIATE RELEASE ● Major developments : Currency - neutral sales up 27 % , despite high - single - digit drag from external factors DTC growth of more than 30 % , with e - com up 43 % on top of 35 % in the prior year quarter Gross margin up 2.1pp to 51.8 % due to healthy inventory position ( down 9 % y - o - y ) Operating margin improves 12.3pp to 13.4 % Net income from continuing operations reaches € 502 million Full - year outlook upgraded : sales now expected to grow at a high - teens rate in 2021 ● ● Herzogenaurach , May 7 , 2021 ● adidas fast out of the gate in 2021 ; full - year outlook upgraded " We are fast out of the gate in the first year of our new strategic cycle , with excellent revenue growth , DTC - led sales increases in all market segments and strong profitability improvements , " said adidas CEO Kasper Rorsted . " We upgrade our full - year outlook as we are now even more confident about a strong top - line recovery this year , even though the environment is not yet back to normal . Our strategy ' Own the Game ' is off to a great start and 2021 will be an important first step in successfully executing against our 2025 ambition . " Currency - neutral revenues increase 27 % with footwear up 31 % In the first quarter , currency - neutral revenues grew 27 % . This growth was achieved against the backdrop of prolonged lockdowns in Europe and industry - wide supply - chain challenges , which reduced currency - neutral revenue growth by a high - single - digit rate during the quarter . From a channel perspective , the company's top - line increase was led by exceptional improvements in direct - to - consumer ( DTC ) revenues , which were up 31 % and accounted for more than one - third of total sales . This development is a direct result of strong sell - through trends , as the brand's products resonate well with consumers globally . Within DTC , e - commerce again showed particular strength as sales were driven by an exceptional increase in full - price revenues . E - commerce sales rose 43 % on top of 35 % growth in the prior year quarter , thereby almost doubling over the two - year period . Globally , revenue growth was strongest in footwear with a 31 % increase and driven by double - digit gains in the training , running , outdoor and lifestyle categories . In euro terms , the company's revenues grew 20 % in the first quarter to € 5.268 billion ( 2020 : € 4.381 billion ) . Following the company's decision to focus its efforts on further strengthening the leading position of the adidas brand and to start a process aimed at divesting Reebok , all income and expenses of the Reebok business are reported as discontinued operations as of the first quarter 2021. For the sake of clarity , all figures related to the 2020 financial year refer to the company's continuing operations unless otherwise stated . However , a restatement of 2020 balance sheet items is not permitted under IFRS . 1