Adidas Raises Guidance, Citing Yeezy Sales and Core Business

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The German sportswear retailer has said there are no plans to produce more items in the Yeezy line once the current stockpile dissipates.

on Tuesday raised its full-year guidance — and the company said that results have once again been “positively impacted” by its decision to start selling business also saw improvements in the quarter. Revenues in the third quarter declined 6 percent to nearly 6 billion euros, or $6.35 billion. Gross margin improved 0.2 percentage points to 49.3 percent. Operating profit was 409 million euros, for an operating margin of 6.8 percent.

For the full-year of 2023, Adidas now expects currency neutral revenues to decline at a low-single-digit rate, up from a previously issued guidance that saw revenues declining at a mid- single-digit rate. Underlying operating profit, which includes one-offs relate to Yeezy and a broader strategic review, is expected to land around 100 million euros, compared to a previously estimated projection to break even.

 

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