Adidas Raises Revenue Guidance and Reduces 2023 Operating Loss Forecast
Adidas, the renowned sportswear giant, has revised its full-year revenue forecast, citing increased sales of Yeezy shoes and a stronger core business. The German company now expects an operating loss of approximately 100 million euros ($105.88 million) for 2023, down from the previously projected 450 million euros.
The company stated that the positive performance in the quarter was primarily influenced by the sale of its remaining Yeezy inventory, as well as better-than-expected growth in the underlying Adidas business. This news has boosted investor confidence in CEO Bjorn Gulden’s ability to turn the company around following the separation from rapper Kanye West due to controversial comments he made in interviews.
Excluding the costs associated with discontinuing the lucrative Yeezy shoe range, Adidas now anticipates an underlying operating profit of 100 million euros, a significant improvement from the previous break-even forecast.
Adidas reported a 1% increase in third-quarter revenues compared to the same period last year, when measured in currency-neutral terms. Additionally, the gross margin improved by 0.2 percentage points to 49.3%.
However, due to the stronger euro, third-quarter revenues in euro terms declined by 6% compared to the previous year.
These positive developments indicate a promising future for Adidas and highlight the company’s ability to adapt and thrive in the dynamic sportswear market. With a revised revenue forecast and a reduced operating loss projection, Adidas is on track to regain its competitive edge and deliver value to its shareholders.
