Adidas Beats Q4 Expectations, Eyes Growth

FINANCE
Adidas Beats Q4 Expectations, Eyes Growth

Adidas reported a 19% revenue increase in the fourth quarter of 2024, reaching €5.97 billion ($6.34 billion), surpassing analysts' expectations of €5.72 billion. The German sportswear giant also returned to profitability, posting €57 million in operating profit compared to a €377 million loss a year prior.

Despite the strong results, Adidas expects slower revenue growth in 2025 as it shifts focus from its now-defunct Yeezy line and aims to expand market share in North America amid Nike’s struggles. CEO Bjorn Gulden acknowledged uncertainties but expressed confidence in the company’s agility and local strategies.

Full-year 2024 sales rose 12% to €23.7 billion, with an operating profit of €1.34 billion. Adidas aims for high single-digit growth in 2025, targeting €1.7-1.8 billion in operating profit. However, increasing competition from New Balance, On, and Hoka remains a challenge as Adidas looks to innovate beyond its popular Samba and Gazelle sneakers.

TECH
Judge Denies Musk’s OpenAI Injunction

A federal judge denied Elon Musk’s request for a court order blocking OpenAI’s transition to a for-profit company, though she offered to expedite a trial to address Musk’s claims against OpenAI and CEO Sam Altman.

U.S. District Judge Yvonne Gonzalez Rogers ruled Tuesday that Musk failed to show a likelihood of success in his request for a preliminary injunction. However, she suggested holding a trial as soon as this fall, citing public interest and potential harm.

Musk, an early OpenAI investor, sued in 2023 for breach of contract, arguing that OpenAI abandoned its nonprofit mission. His lawsuit expanded to include Microsoft and accused OpenAI of stifling competition, adding Musk’s AI startup, xAI, as a plaintiff.

The judge questioned Musk’s claim of irreparable harm, citing his $97.4 billion bid to buy OpenAI’s nonprofit arm. OpenAI welcomed the ruling, stating that Musk once sought to merge OpenAI into Tesla for personal benefit.

FINANCE
BlackRock-Led Group Buys Canal Ports

Hong Kong-based CK Hutchison Holdings has agreed to sell its stakes in Panama’s key ports to a consortium led by BlackRock, following allegations by President Donald Trump of Chinese interference in the Panama Canal’s operations.

In a Tuesday filing, CK Hutchison announced the sale of Hutchison Port Holdings and Hutchison Port Group Holdings, which together control 80% of Hutchison Ports’ global operations across 43 ports in 23 countries. The BlackRock-led consortium, which includes Global Infrastructure Partners and Terminal Investment Limited, will acquire a 90% stake in Panama Ports Company, which manages the Balboa and Cristobal ports.

The move follows concerns from U.S. lawmakers, including Senator Ted Cruz, that China could exploit the canal for strategic control. After Secretary of State Marco Rubio’s visit to Panama, the country exited China’s Belt and Road Initiative, fueling further tensions. The Trump administration had reportedly been seeking a U.S. firm to take over the ports’ management.

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