from Adidas AG (isin : DE000A1EWWW0)
EQS-Adhoc: adidas announces preliminary third quarter results and increases full year guidance
EQS-Ad-hoc: adidas AG / Key word(s): Quarter Results/Change in Forecast
adidas announces preliminary third quarter results and increases full year guidance
17-Oct-2023 / 18:26 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
FOR IMMEDIATE RELEASE
Herzogenaurach, October 17, 2023
adidas announces preliminary third quarter results and increases full year guidance
adidas today announced preliminary results for the third quarter of 2023. In Q3, currency-neutral revenues increased 1% versus the prior year level. In euro terms, the company’s revenues declined 6% to € 5.999 billion (2022: € 6.408 billion). The company’s gross margin improved 0.2 percentage points to 49.3% in Q3 (2022: 49.1%). Operating profit reached € 409 million during the quarter (2022: € 564 million), reflecting an operating margin of 6.8% (2022: 8.8%). While the company’s performance in the quarter was again positively impacted by the sale of parts of its remaining Yeezy inventory, the underlying adidas business also developed better than expected.
Consequently, the company has updated its full year guidance: adidas now expects currency-neutral revenues to decline at a low-single-digit rate in 2023 (previously: decline at a mid-single-digit rate). At the same time, the company’s underlying operating profit – excluding any one-offs related to Yeezy and the ongoing strategic review – is now anticipated to reach a level of around €100 million in 2023 (previously: around break-even level).
Including the positive impact from the two Yeezy drops in Q2 and Q3, the potential write-off of the remaining Yeezy inventory of now around € 300 million (previously: € 400 million) and one-off costs related to the strategic review of up to € 200 million (unchanged), adidas now expects to report an operating loss of around € 100 million in 2023 (previously: loss of € 450 million).
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| Explanations of performance measures can be found on the website of adidas AG (overview of ‘Alternative Performance Measures’ are available online at https://www.adidas-group.com/en/investors/financial-reports/). Contacts: |
| Media Relations Investor Relations corporate.press@adidas.com Tel.: +49 (0) 9132 84-2352 investor.relations@adidas.com Tel.: +49 (0) 9132 84-2920 |
For more information, please visit adidas-group.com.
End of Inside Information
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| Language: | English |
| Company: | adidas AG |
| Adi-Dassler-Straße 1 | |
| 91074 Herzogenaurach | |
| Germany | |
| Phone: | +49 9132 84 0 |
| Fax: | +49 9132 84 2241 |
| Internet: | www.adidas-group.com |
| ISIN: | DE000A1EWWW0, US00687A1079, US00687P1049 |
| WKN: | A1EWWW, A0MNCC , 909676 |
| Indices: | DAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 1751073 |
| End of Announcement | EQS News Service |
1751073 17-Oct-2023 CET/CEST