Adidas, the renowned apparel maker, saw its shares advance on Wednesday following an optimistic update on its full-year forecast. The company’s shares (ADS, +4.06%) climbed by 4% after the release of its third-quarter earnings report, which revealed a 27% decrease in operating profit alongside a 6% decline in revenue. However, Adidas stated that the performance of its underlying business, as well as the successful sell-off of its remaining Yeezy inventory, contributed significantly to its results.
The company now predicts an adjusted operating profit of approximately €100 million for the entire year, compared to the initial guidance of breaking even. Additionally, Adidas anticipates a slight decline in revenue on a currency-neutral basis, as opposed to the previous estimate of a mid-single-digit decrease.
Experts at Stifel commented that the implied guidance for the fourth quarter appears to be “highly conservative.” They also highlighted Adidas CEO Bjorn Gulden’s consistent strategy of underpromising and then overdelivering since the fiscal year of 2022. As a result of the positive news surrounding Adidas, shares of Gulden’s former company, Puma (PUM, +2.53%), also rose by 3%.
In other market news, Just Eat Takeaway (TKWY, +6.66%) experienced a 7% increase in its stock value after revising its guidance and introducing a €150 million stock buyback program. Conversely, chip equipment manufacturer ASML Holding (ASML, -4.05%) saw its shares decline by 5% due to orders falling well below consensus estimates.
Meanwhile, the German DAX (DX:DAX), French CAC 40 (FR:PX1), and U.K. FTSE 100 (UK:UKX) stock market indexes all registered decreases following a surge in U.S. bond yields, which were driven by better-than-expected retail sales.
Lastly, the pound (GBPUSD, +0.09%) exhibited slight strength following the release of U.K. consumer price index (CPI) data, which came in one-tenth higher than anticipated.
Whether you’re an investor or simply interested in the latest market developments, it’s clear that Adidas’s improved financial outlook has positively impacted the company’s shares and has also influenced the broader market trends.