Adidas Shares Rose After Yeezy Sales Boosted Full-Year Guidance
October 18 2023 - 3:16AM
Dow Jones News
By Giulia Petroni
Shares in Adidas rose on Wednesday after the sportswear giant
raised its full-year guidance supported by sales of another batch
of Yeezy sneakers and improvements in its core business.
At 0726 GMT, the stock traded 3.7% higher at EUR177.26.
The German company now expects a narrower operating loss of
around 100 million euros ($105.8 million) in 2023, compared with
the EUR450 million loss anticipated in July.
The potential write-off of the remaining Yeezy inventory after
it parted ways with musician and designer Kanye West, also known as
Ye, is now expected to be around EUR300 million compared with
EUR400 million previously.
Currency-neutral revenue is forecast to decline at a
low-single-digit rate in the year, from previous expectations of a
decline in a mid-single-digit rate.
According to preliminary results for the third quarter, revenue
fell 6% on year to EUR6 billion, while operating profit decreased
to EUR409 million from EUR564 million in the year-earlier period,
Adidas said.
"Preliminary key 3Q figures exceed the low market expectations,"
Baader Helvea's Volker Bosse said in a note. "However, Adidas'
topline figures underpin that the overall consumer sentiment is
still at subdued levels."
Adidas is scheduled to release third-quarter results on Nov.
8.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
October 18, 2023 04:01 ET (08:01 GMT)
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