Adidas says its top and bottom-line development in Q2 was positively impacted by the first sale of some of its Yeezy inventory as announced at the end of May.
The fashion sports brand believes its underlying business developed slightly better than expected and the company has provided an update on its performance for the rest of the year.
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Adidas second Quarter 2023 results
- Currency-neutral revenues remained flat compared to the same period last year.
- Revenues decreased by 5% to €5.3bn ($5.8bn) compared to last year’s results of €5.6bn.
- Gross margin improved slightly to 50.9% from 50.3% in 2022.
- Operating profit reached €176m with an operating margin of 3.3%.
Adidas full-year guidance update
- adidas now expects currency-neutral revenues to decline by a mid-single-digit rate in 2023, previously projected to decline by a high-single-digit rate.
- Underlying operating profit, excluding one-offs related to Yeezy and the ongoing strategic review, is anticipated to be around the break-even level.
Impact of Yeezy
- The first Yeezy inventory sale had a positive impact on Adidas’ financials.
- The potential write-off of the remaining Yeezy inventory, previously marked at €500m, has been adjusted to €400m.
- One-off costs related to the strategic review remain unchanged at up to €200m.
- Adidas now estimates an operating loss of €450m in 2023, previously projected at a loss of €700m.
Adidas remains optimistic about the potential positive impact of future Yeezy drops on the company’s results.
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