EQS-Adhoc

adidas full-year results exceed latest expectations; company decides not to write off most of its Yeezy inventory

EQS-Ad-hoc: adidas AG / Key word(s): Annual Results/Forecast adidas full-year results exceed latest expectations; company decides not to write off most of its Yeezy inventory 31-Jan-2024 / 18:25 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. FOR IMMEDIATE RELEASE                                                        Herzogenaurach, January 31, 2024

 

adidas full-year results exceed latest expectations;
company decides not to write off most of its Yeezy inventory

adidas today published preliminary results for 2023. Based on preliminary unaudited numbers, adidas currency-neutral revenues were flat versus the prior year-level in 2023 (latest guidance: to decline at a low-single-digit rate) despite the drag from the devaluation of the Argentine Peso in the fourth quarter. In reported terms, sales were down 5% to € 21,427 million in 2023 (2022: € 22,511 million). Reported revenues include the negative translation impact of more than € 1,000 million from unfavorable currency movements, which are expected to remain a drag on the company’s top-line development in 2024.

The sales development in 2023 was impacted by significantly reduced sell-in to the wholesale channel as part of the company’s successful initiatives to reduce high inventory levels. In addition, the discontinuation of the Yeezy business had a negative effect on the top-line development during the year. This represented a drag of around € 500 million on the year-over-year comparison. The two Yeezy drops positively impacted net sales in an amount of around € 750 million in 2023. This compares to a total of more than € 1,200 million of Yeezy revenues in 2022. Excluding the Yeezy revenues in both years, currency-neutral revenues were up 2% in 2023.