Business at Adidas has been going well for a long time. The third quarter also exceeded expectations, which are now being adjusted upwards for the year as a whole.
After a better-than-expected third quarter, sporting goods manufacturer Adidas has again increased its forecasts for the current year. The company announced on Tuesday after the stock market closed in Herzogenaurach that the operating result should now reach around 1.2 billion euros. Adidas recently promised around a billion. The Nike competitor was also more optimistic about revenue: sales are expected to increase by around ten percent after adjusting for currency effects. Most recently, growth in the high single-digit percentage range was targeted. Adidas had already raised its outlook after the first and second quarters.
In the third quarter, sales increased by around 10 percent after adjusting for currency effects. In euros, growth was 7 percent to 6.4 billion euros. The operating result rose from 409 to 598 million euros. Analysts had expected less.
A profit of 50 million euros from the sale of additional parts of the Yeezy inventory contributed to the operating result. After racist and sexist statements by rapper Kanye West, Adidas ended the collaboration at the end of 2022 and began selling the previously highly successful products in 2023. The turbulence, among other factors, had a significant impact on the past financial year.
Adidas expects the remaining Yeezy inventory to be sold on average over the course of the year to cover costs. This would lead to further sales of around 50 million euros without any additional profit contribution in the fourth quarter.
Source: Stern
