Adidas on Tuesday increased its full-year earnings forecast and reported better-than-anticipated third-quarter revenue, helped by sales of its Yeezy collection.
In a shocking early estimates announcement, the German sportswear giant forecasted an operating loss of 100 million euros ($106 million) for the entire year, a major improvement over its earlier forecast of a loss of 450 million euros. It also predicted that revenues would decrease by a low-single-digit percentage in 2023.
Operating profit for the third quarter decreased from 564 million euros for the same quarter in 2022 to 409 million euros.
Early on Wednesday in European trading, Adidas shares increased by 4%.
Adidas stated in its earnings report that while the sale of some of its leftover Yeezy inventory helped the firm do well in the quarter, the underlying adidas business also performed better than anticipated.
After the rapper made a number of derogatory and antisemitic comments, the corporation ended its collaboration with Ye, formerly known as Kanye West, in October 2022. It has now been trying to sell off its stock of his recognisable Yeezy trainers.
Source (CNBC)
