ToplineAdidas’ shares slumped sharply Thursday morning after the company’s conservative projections for 2024 fell short of analyst expectations, as the company continues to deal with the fallout of severing ties with Kanye West.Adidas shares plummeted on Thursday after the company's cautious projections for 2024.Getty Images Key FactsAdidas’ share price plunged nearly 9% after markets opened in Europe on Thursday, before settling at $178.5 (165.44)—down 6% from the previous day. In its preliminary full yea ...

adidas AG (OTCQX:ADDYY) will continue selling its leftover Yeezy stock in 2024, despite cutting ties with Kanye West, the brand’s creator, in 2022. During the fourth quarter, the group decided to not write off the additional €300 million Yeezy stock it had left over and instead will look to sell it for “at least at cost” in 2024. The decision, along with stronger-than-expected trading in the fourth quarter, meant operating profit reached €268 million for the 2023 financial year, down from 2022’s €669 millio ...

Adidas announced Wednesday that it won't write off the majority of its unsold Yeezy inventory and instead plans to sell the remaining shoes "at least" at the cost it paid for them, as the apparel retailer looks to recoup its losses. The German sportswear giant had previously considered writing off about €300 million, or $325 million, in unsold Yeezy inventory after the company cut ties with rapper Ye, formerly known as Kanye West, over a series of antisemitic remarks he made. In its announcement, Adidas sai ...

By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time.Access your favorite topics in a personalized feed while you're on the go. download the appThanks for signing up!Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewNike's stock was down more than 11% Friday after the company lowered its outlook and said it planned $2 billion in cuts, which could include more layoffs.As part of its three ...

About this content About Jeremy Cutler Jeremy has worked extensively in the world of financial journalism as a reporter at ICV News, deputy editor at S&P Marketscope and as a senior reporter for Thomson Financial’s Marketeye.  A qualified accountant, former finance director and with a degree in Economics, Jeremy is well placed to analyse and explain the ups and downs of UK, European and US stockmarkets in Proactive’s daily market report Read more About the publisher Proactive financial news and online br ...

Shares in the world’s top sportswear companies slumped on Friday after apparel giant Nike lowered its sales forecasts, warning of a drop in consumer spending, and outlined plans to make $2 billion worth of cost savings over the next three years.Adidas ADS, -5.70%, Puma PUM, -6.29%, and JD Sports Fashion JD, -5.38% shares all fell on Friday morning after shares in Nike NKE, +0.91% tumbled 12% during Thursday’s after hours trading session, following publication of its fourth-quarter results. Adidas shares fel ...

Financial Data and Key Metrics Changes - The company reported €6 billion in net sales for Q3 2023, with a gross profit margin of 49.3% and an operating profit of €409 million [62][63] - Inventory levels decreased by 23% year-over-year, now at €4.8 billion, with a significant reduction from €6.3 billion in Q3 2022 [69][71] - The company expects a low single-digit decline in net sales for the full year, an improvement from previous guidance of a mid-single-digit decline [73][74] Business Line Data and Key Metrics Changes - Footwear sales grew by 6%, while apparel sales declined by 6% due to high inventory levels [39] - The direct-to-consumer (D2C) business is split 37% D2C and 63% wholesale, with brick-and-mortar retail up 10% [37][36] - The wholesale business saw a decline of 2%, attributed to a weak order book at the start of the quarter [35] Market Data and Key Metrics Changes - North America experienced a 9% decline in sales for the quarter, with a 15% decline year-to-date [13] - Greater China reported a 6% increase for the quarter and a 3% increase year-to-date, showing recovery from earlier declines [25] - Latin America saw a 13% increase for the quarter and a 29% increase year-to-date, although growth slowed due to political and economic uncertainties [31] Company Strategy and Development Direction - The company is focusing on improving relationships with retail partners and enhancing the order book for H1 2024 [82] - A new office in Los Angeles aims to strengthen connections with American street culture and basketball [16] - The company plans to invest in various sports, including basketball and running, to build credibility and market presence in China [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges in the U.S. market but expressed optimism about improving inventory levels and sell-through rates [12][15] - The company is committed to building a strong foundation for 2024 and beyond, prioritizing long-term growth over short-term gains [79] - Management emphasized the importance of innovation and brand heat, with a pipeline of new products set to launch soon [77] Other Important Information - The company has decided not to launch any new Yeezy products in Q4 2023, focusing instead on evaluating future strategies for the Yeezy inventory [61] - The company is actively engaging in collaborations and partnerships to enhance brand visibility and appeal to younger consumers [57][58] Q&A Session All Questions and Answers Question: What is driving the deceleration in your performance for Q4? - Management indicated that Q4 guidance reflects a conservative approach to avoid overextending the pipeline, focusing on laying a foundation for better performance in 2024 [84] Question: Are you seeing retailers change and have more appetite for higher preorders in H1 or H2 2024? - Management confirmed an increase in retailer interest and expects a much higher order book for the second half of 2024, indicating a positive shift in retailer relationships [82]

02-2023 RESULTS AUGUST 03, 2023 adidas ARE ADIDAS TEAMS Argentina, Colombia, Germany, Japan, Spain, Sweden, Costa Rica, Italy, Jamaica & the Philippines ADIDAS SHOES Such as Mary Fowler, Alessia Russo, Lena Oberdorf, Wendie Renard, Jennifer Hermoso, Trinity Rodman… | --- | --- | --- | |-------|-------|-------| | | | | | | | | | | | | | 10 BB | | r | | | | | | | | | play until they can't look away TRINITY RODMAN NET SALES GROWTH BY MARKET SEGMENT Y-O-Y & NORTH AMERICA -16% 650 Q2 2023 H1 2023 CONTINUING OPER ...

Financial Data and Key Metrics Changes - Sales for Q1 2023 were €5.3 billion, essentially flat on a currency-neutral basis, but up 7% when excluding the Yeezy business [7] - Gross profit margin decreased by 510 basis points, primarily due to discounts and inventory write-offs, with expectations to return towards 50% in the future [7] - Operating expenses increased by approximately €110 million, leading to a small profit of €60 million, which was better than expected given prior forecasts of a small loss [8] Business Line Data and Key Metrics Changes - Footwear sales reached €3 billion, up 1%, while apparel sales decreased by 3% to nearly €2 billion, indicating a higher inventory of apparel compared to footwear [25] - The accessory business grew by 8%, contributing to a split of 57% footwear, 37% apparel, and 6% accessories [26] - Performance categories showed double-digit growth, except for training, which remained flat [27] Market Data and Key Metrics Changes - North America experienced a dramatic 20% decline in sales, but when excluding Yeezy, the decline was only 5% [9] - EMEA showed a slight increase of 9% when excluding Russia, indicating positive growth in the region [16] - China reported a 9% decline, but sell-through rates were up double digits, suggesting potential for recovery [17][20] Company Strategy and Development Direction - The company is heavily investing in women's soccer, with jerseys developed for teams participating in the upcoming Women's World Cup [6] - Strategic initiatives include extending the MLS contract and enhancing soccer culture in the U.S. [10] - The focus remains on improving the core business areas of design, development, sourcing, and marketing to build a stronger foundation for future growth [58] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing geopolitical tensions and macroeconomic challenges but noted some positive trends, such as decreasing inflation and normalizing freight costs [62] - The company confirmed guidance for 2023 as a transition year, expecting a high single-digit decline in net sales and a breakeven operating model [63] - There is optimism about regaining market share in China as local brands begin to saturate [74] Other Important Information - The company is working on various exit options for the Yeezy inventory, with decisions expected in the mid-term [75] - Inventory levels are currently at €5.7 billion, with €500 million attributed to Yeezy, indicating a need for better inventory management [51][52] Q&A Session Summary Question: Comments on market share between Western and local Chinese brands - Management noted that while local brands have gained market share, there are signs of saturation, and Western brands, including Adidas, are expected to regain some market share [73][74] Question: Distribution points in China and future store openings - The number of sales points in China is around 8,000, with expectations to open more stores in lower-tier cities as the business stabilizes [78][79] Question: Route to margin improvement and gross margin targets - Management indicated that gross margins should improve from the current low levels, with a target of reaching 10% EBIT in the mid-term [80][83]

adidas AG (OTCQX:ADDYY) Q4 2022 Earnings Conference Call March 8, 2023 9:00 AM ET Company Participants Sebastian Steffen - Head of Investor Relations Bjorn Gulden - Chief Executive Officer Harm Ohlmeyer - Chief Financial Officer Conference Call Participants Graham Renwick - Berenberg Erwan Rambourg - HSBC Geoff Lowery - Redburn Warwick Okines - BNP Paribas Jurgen Kolb - Kepler Cheuvreux Cedric Lecasble - Stifel Nicolaus James Grzinic - Jefferies International Edouard Aubin - Morgan Stanley Olivia Townsend - ...