adidas AG - Earnings Release 2023

News Details

Ad-hoc | 17 October 2023 18:26

adidas announces preliminary third quarter results and increases full year guidance

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 [email protected] Tel.: +49 (0) 9132 84-2352 [email protected] 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