Performance at Adidas was again positively impacted by the sale of parts of its remaining Yeezy inventory, and the underlying business also developed better than expected. Consequently, the company has updated its full year guidance.
Adidas now expects currency neutral revenues to decline at a low-single-digit rate in 2023 compared to earlier outlook of decline at a mid single-digit rate. The company’s underlying operating profit is now anticipated to reach around 100 million euros against previous forecast of around break-even level. Adidas now expects to report an operating loss of around 100 million euros compared to previous expectation of loss of 450 million euros.
In its preliminary third quarter update, Adidas said currency neutral revenues increased 1 percent versus the prior year level. In euro terms, the company’s revenues declined 6 percent to 5.999 billion euros.
The company’s gross margin improved 0.2 percentage points to 49.3 percent, while operating profit reached 409 million euros during the quarter, reflecting an operating margin of 6.8 percent.