Adidas AG announced on Monday that its sales have decreased in the second quarter of the year, while also expecting a reduced operating loss for the entire year.
According to preliminary figures, the German sportswear giant anticipates a 5% decline in revenue, amounting to 5.34 billion euros ($5.94 billion) for the quarter. However, it forecasts that currency-neutral revenue will remain steady compared to the previous year.
Adidas revealed that its operating profit for the second quarter was EUR176 million, a drop from EUR392 million reported a year ago. The company highlighted that the sale of some of its Yeezy stock contributed positively to both its top and bottom line figures.
Looking ahead to 2023, Adidas projects a mid-single-digit decrease in currency-neutral revenues. Additionally, it expects its underlying operating profit to hover around the break-even level.
In terms of financial estimates, the company now foresees an operating loss of EUR450 million in 2023. This update is a significant improvement from the previous estimate of EUR700 million. The change is attributed to the potential write-off of the remaining Yeezy inventory and one-off costs.
It’s worth noting that Adidas included no appeals for contact, follow-up, or subscription information.
Written by Maitane Sardon