Adidas Reports Lower Net Profit; Continues to Destock
November 08 2023 - 2:42AM
Dow Jones News
By Andrea Figueras
Adidas on Wednesday posted a decline in net profit and sales for
the third quarter while it continued to reduce high inventory
levels.
The German athletic apparel and footwear company confirmed its
third-quarter preliminary figures and said that net profit fell 25%
on year to 259 million euros ($277.1 million).
As reported last month, revenue declined 6.4% to EUR6 billion,
although currency-neutral revenue increased 1%, it said.
Operating profit fell to EUR409 million from EUR564 million and
the operating margin was 6.8%, down from 8.8% in 2022.
Results for the third quarter were better than expected, but the
current performance isn't good enough, the company said.
Inventory levels decreased more than expected and were down 23%
on year, it said. During the first nine months, inventories fell by
more than EUR1.1 billion.
Adidas backed its recently updated guidance for 2023, which was
raised thanks to Yeezy inventory reductions and a
better-than-expected underlying business, it said.
It continues to expect currency-neutral revenues to decline at a
low single-digit rate and underlying operating profit--excluding
any one-offs related to Yeezy and the underway strategic review--at
around EUR100 million.
Adidas also sees an operating loss of around EUR100 million this
year.
Write to Andrea Figueras at andrea.figueras@wsj.com
(END) Dow Jones Newswires
November 08, 2023 02:27 ET (07:27 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
Adidas (QX) (USOTC:ADDYY)
Historical Stock Chart
From Oct 2024 to Nov 2024
Adidas (QX) (USOTC:ADDYY)
Historical Stock Chart
From Nov 2023 to Nov 2024
