Sharp Inventory Reduction Pushes Adidas Revenue; Gets €350M Boost From Yeezy Sales
Portfolio Pulse from Shivani Kumaresan
Adidas AG reported a 1% increase in currency-neutral revenues for Q3 FY23 to €5.999 billion, driven by growth in all regions except North America. The second product drop of Yeezy inventory generated revenues of around €350 million in Q3. Footwear revenues grew 6% on a currency-neutral basis, while apparel sales declined 6%, and accessories revenues were down 3%. The company's operating profit amounted to €409 million with an operating margin of 6.8% versus 8.8% a year ago. Inventories are now down 23% to €4.849 billion versus €6.315 billion last year. For FY23, Adidas expects currency-neutral revenues to decline at a low-single-digit rate.
November 08, 2023 | 1:31 pm
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Adidas reported a 1% increase in Q3 FY23 revenues, driven by growth in all regions except North America. The company's operating profit amounted to €409 million with an operating margin of 6.8% versus 8.8% a year ago. Inventories are now down 23% to €4.849 billion versus €6.315 billion last year. For FY23, Adidas expects currency-neutral revenues to decline at a low-single-digit rate.
Adidas reported a slight increase in Q3 FY23 revenues, driven by growth in all regions except North America. However, the company expects a decline in revenues for FY23. This mixed financial performance could lead to neutral short-term impact on the company's stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100