Operating deficit becomes smaller
Adidas is getting rid of “Yeezy” shoes – forecast raised
October 17, 2023, 7:00 p.m
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Adidas expects a significantly lower operating loss this year. Two sales for controversial rapper Kanye West’s shoes are bringing in more than hoped. And day-to-day business is also going better than expected.
The sporting goods manufacturer Adidas is raising its earnings and sales forecast again after the second successful sale of “Yeezy” shoes. The operating loss this year will only be around 100 million euros and will therefore be 350 million euros lower than predicted in the summer, said the number two on the global sporting goods market in Herzogenaurach. Sales will only shrink by a small single-digit percentage.
Previously, CEO Björn Gulden had assumed a decline of around five percent after Adidas terminated its partnership with the controversial rapper Kanye West (“Ye”), who was responsible for the design of the “Yeezy” sneakers. However, two online sales campaigns for the remaining stocks significantly improved the result.
But normal business also went better than expected in the past quarter, Adidas explained. The operating result fell by a good quarter to 409 (previous year: 564) million euros between July and September. This corresponds to a margin of 6.8 (8.8) percent. Sales only fell by six percent to almost six billion euros due to the strong dollar. Adjusted for currency effects, it rose by one percent.