In its preliminary results for the second quarter of 2023, German-based sportswear giant adidas recorded slightly better than expected results.
In the three months to the 30th June, adidas posted a flat currency-neutral revenue from the same period of last year. The company’s revenue decreased by five percent year-over-year. Its operating profit totalled 176 million euros, as compared to the 392 million euros recorded in the second quarter of 2022.
Overall, adidas’ top and bottom-line development in the quarter was positively impacted by the first sale of a portion of its Yeezy inventory, as announced at the end of May.
adidas has therefore updated its full year guidance, and expects its currency-neutral revenues to decline at a mid-single-digit rate in 2023, in comparison to the previous outlook of a decline at a high-single-digit rate.
The company is expecting a full year operating loss of 450 million euros, as compared to the prior estimated 700 million euros loss, due to the potential write-off of the remaining Yeezy inventory of 400 million euros.
adidas believes potential future Yeezy drops could further improve the company’s results if successful.
