Adidas Updates FY Guidance, Sees Revenue To Decline At A Low-Single-Digit Rate In 2023; Sees Underlying Operating Profit, Now Expected To Reach A Level Of Around €100M; Potential Write Off For Remaining Yeezy Inventory Now €300M + One Off Costs Of €200M
Portfolio Pulse from Benzinga Newsdesk
Adidas has updated its FY guidance, predicting a low-single-digit rate decline in revenue for 2023. The company's underlying operating profit is now expected to reach around €100M. Adidas also anticipates a potential write-off for the remaining Yeezy inventory, now estimated at €300M, plus one-off costs of €200M.
October 17, 2023 | 4:35 pm
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Adidas' updated FY guidance indicates a potential decline in revenue and a significant write-off for Yeezy inventory. This could negatively impact the company's stock price in the short term.
Adidas' updated guidance indicates a potential decline in revenue for 2023, which could negatively impact investor sentiment and drive the stock price down. Additionally, the anticipated write-off for the remaining Yeezy inventory, along with one-off costs, could further strain the company's financials, potentially leading to a negative impact on the stock price.
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IMPORTANCE 80
RELEVANCE 100