LONDON, Jan 21 (Reuters) - Adidas reported

what it said were better than expected preliminary

fourth-quarter results on Tuesday, with strong sales and

profitability for the important holiday shopping period, sealing

a successful turnaround year.

The German sportswear brand focused in the past year on

fuelling a trend for its retro multicoloured, three-striped

shoes like the Samba and Gazelle to reboot its brand and boost

sales, and has benefited from weaker performance at its bigger

rival Nike ( NKE ).

It said revenue was up 19% year on year in currency-neutral

terms in the fourth quarter, while its gross margin increased by

5.2 percentage points to 49.8%.

Adidas reported sales of 5.956 billion euros ($6.2 billion),

up from 4.812 billion a year ago.

For the full year, revenue was up 12% in currency-neutral

terms, hitting 23.683 billion euros ($24.7 billion).

Profitability improved with the gross margin rising by 3.3

percentage points to 50.8%.

The results mark a significant recovery for Adidas from an

annual loss in 2023 for the first time in more than 30 years,

bruised by cutting ties with disgraced rapper Ye, formerly known

as Kanye West, leading to the abrupt ending of its lucrative

Yeezy shoe line.

Operating profit for 2024 increased to 1.337 billion euros,

from 268 million euros in 2023.

($1 = 0.9593 euros)

(Reporting by Helen Reid;

Editing by David Goodman and Emelia Sithole-Matarise)