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]

Financial Data and Key Metrics Changes - The company reported a net sales growth of 1% in currency-neutral terms, with a gross margin decline of 3.4 percentage points to 47.3% and an operating margin down to 3% [13][20] - Net income from continuing operations was approximately €254 million, reflecting significant one-off costs of €350 million [20][21] - The company originally planned for double-digit growth and margins, which were not achieved due to various challenges [13][20] Business Line Data and Key Metrics Changes - Performance categories grew by 19%, with football seeing significant growth, particularly during the FIFA World Cup [15] - Lifestyle and sportswear categories faced disappointing performance, with a need for improvement in commercial offerings [17][49] - The wholesale channel grew by 1%, while direct-to-consumer (D2C) sales increased by 2%, and e-commerce grew by 4% [18] Market Data and Key Metrics Changes - Europe saw a 9% growth, while North America experienced a 12% increase, and Latin America also reported double-digit growth [14] - Greater China faced a significant decline of 36%, impacting overall profitability [14] - The company noted strong growth in outdoor, football, and running categories across various regions, despite challenges in lifestyle segments [15][54] Company Strategy and Development Direction - The company aims to focus on performance categories and improve its lifestyle offerings, with plans to enhance storytelling and marketing strategies [11][17] - There is a commitment to sustainability and gender equality, with campaigns like "Run for the Oceans" and "I'mPossible" [11][42] - The company plans to leverage its historical roots in sports and expand its presence in smaller sports and fashion collaborations [36][44] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2022, including the war in Ukraine, COVID-19 restrictions, and the termination of the Yeezy partnership [12][54] - There are positive signals emerging from the Chinese market, with a return to sports participation and increased consumer spending [54][55] - The company is optimistic about future growth, particularly in performance categories and emerging markets [53][62] Other Important Information - The company proposed a dividend of €0.70 per share, representing a payout ratio of 49.2% of net income [29] - The company is focused on reducing excess inventory and improving its financial position, with a goal to return to a leverage ratio below 2 by 2024 [28] Q&A Session Summary Question: What are the expectations for growth in the coming years? - The company aims to achieve a return to double-digit growth and improve margins, focusing on performance categories and addressing lifestyle segment challenges [13][44] Question: How is the company addressing inventory issues? - The company is reducing buying volumes and repurposing existing inventory to better align with market demand [25][26] Question: What is the outlook for the Greater China market? - Management sees positive signs in Greater China, with increased consumer engagement in sports and performance products [54][55]

adidas AG (OTCQX:ADDYY) Q3 2022 Earnings Conference Call November 9, 2022 9:00 AM ET Company Participants Sebastian Steffen - Head, Investor Relations Kasper Rorsted - Chief Executive Officer Harm Ohlmeyer - Chief Financial Officer Conference Call Participants Jurgen Kolb - Kepler Cheuvreux. Warwick Okines - BNP Paribas Exane Adam Cochrane - Deutsche Bank Geoff Lowery - Redburn David Roux - Bank of America Thomas Chauvet - Citi Omar Saad - Evercore ISI James Grzinic - Jefferies International Aneesha Sherman ...

Q3 2022 RESULTS NOVEMBER 09, 2022 adidas AGENDA l 2 3 4 | --- | --- | --- | |--------------------|-------|-------| | | | | | FINANCIAL UPDATE | | | | OPERATIONAL UPDATE | | | | OUTLOOK | | | | | | | | | | | adidas 2 e BUSINESS UPDATE . . CONSUMER - Pro Comment adidas w A WARD Concess of Sale 4 0 adidas MORE IS POSSIBLE IMPOSSIBLE IS NOTHING ~~ SUSTAINABILITY CREDIBILITY EXPERIENCE adidas STRENGTHS & WEAKNESSES | --- | --- | |----------------------------------------------------------------------------------- ...

Q2 2022 RESULTS AUGUST 4, 2022 adidas AGENDA l 3 | --- | --- | --- | --- | --- | --- | |------------------|-------|-------|-------|-------|-------| | | | | | | | | FINANCIAL UPDATE | | | | | | 2 adidas 2 FACING CONTINUED UNCERTAINTY WAR INFLATIONARY CONSUMER SUPPLY CHAIN CHINA MARKET ENVIRONMENT PRESSURE SPENDING CHALLENGES adidas KEY TAKEAWAYS | --- | --- | --- | --- | --- | |-------|-------------------------------------------------------------------------------------------|-------|-------|-------| | l | S ...

adidas AG (OTCQX:ADDYY) Q2 2022 Earnings Conference Call August 4, 2022 9:00 AM ET Company Participants Sebastian Steffen - Head, Investor Relations Kasper Rorsted - Chief Executive Officer Harm Ohlmeyer - Chief Financial Officer Conference Call Participants Grace Smalley - JPMorgan Graham Renwick - Berenberg Aneesha Sherman - Bernstein Cédric Lecasble - Stifel Jurgen Kolb - Kepler Cheuvreux Zuzanna Pusz - UBS James Grzinic - Jefferies International Thomas Chauvet - Citi Research John Kernan - Cowen Warwick ...

Financial Data and Key Metrics Changes - The company reported a strong set of results for 2021, adding almost €3 billion to the top line despite external challenges [20] - Gross margin increased by 0.7 percentage points to 50.7%, while operating profit rose by more than 150% [20][33] - Net income from continued operations improved by over €1 billion, supported by a tax benefit related to the Reebok divestiture [21][33] Business Line Data and Key Metrics Changes - The North American business grew by 17%, with strong growth in D2C channels [22] - EMEA business saw a 24% increase, with D2C growing by 20% year-over-year [22] - Latin America experienced a remarkable 47% growth, driven by strong demand across various categories [18][22] Market Data and Key Metrics Changes - EMEA, North America, and Latin America collectively grew by 23% in 2021, reflecting strong demand for the brand [22] - Greater China reported a modest 3% growth due to a challenging market environment and COVID-19 lockdowns [22][29] - The company faced significant supply chain constraints, impacting sales and leading to product outages and shipping delays [19][29] Company Strategy and Development Direction - The "Own the Game" strategy focuses on consumer trends such as At Leisure, Betterment, Digital, Sustainability, and Premiumization [10] - The company aims to invest consistently in people, innovation, and digital transformation to drive growth [10][11] - Sustainability remains a key focus, with a target of 90% of products being sustainable by 2025, achieving a 69% share in 2021 [17] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the ongoing challenges posed by the war in Ukraine, COVID-19 restrictions, and supply chain issues [45] - Despite these challenges, the company remains optimistic about long-term growth opportunities and plans to drive double-digit improvements in 2022 [45][64] - The company is committed to investing close to €3 billion in brand campaigns and product launches to accelerate growth [46] Other Important Information - The company plans to return between €8 billion to €9 billion to shareholders through dividends and share buybacks by 2025 [41][42] - A dividend of €3.3 per share is proposed for 2021, representing a 10% increase from the previous year [43] - The company appointed a new Chief Creative Officer to lead its design community and shape the brand's future direction [48] Q&A Session Summary Question: How is the company addressing the challenges in Greater China? - The company has developed a detailed action plan to achieve mid-single-digit growth in Greater China, focusing on localized campaigns and product creation [60][61] Question: What are the expectations for the 2022 financial outlook? - The company projects currency-neutral revenues to increase by 11% to 13%, with a gross margin expected to reach between 51.5% and 52% [64][65]