Adidas Kicks Off 2024 With Optimism: Targets Growth Amid Inventory And Currency Challenges
Portfolio Pulse from Shivani Kumaresan
Adidas AG (OTC:ADDYY) reported a 2% decline in currency-neutral revenues for Q4 FY23, with a notable 8% decline in euro terms due to unfavorable currency movements and the absence of Yeezy business. Despite these challenges, footwear sales rose 8%, driven by growth in Originals and Skateboarding. The company faced a 21% sales decrease in North America but saw a 37% increase in Greater China. Adidas anticipates mid-single-digit sales growth in FY24, despite inventory and currency challenges, and expects an operating profit of around €500 million.
March 13, 2024 | 11:54 am
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Adidas AG reported a challenging Q4 FY23 but is optimistic for FY24, expecting mid-single-digit sales growth despite inventory and currency headwinds, and an operating profit of around €500 million.
Adidas' optimistic outlook for FY24, despite the challenges faced in Q4 FY23, suggests a potential for recovery and growth. The company's strategic initiatives to manage inventory in North America and its expected operating profit indicate a positive direction, likely leading to a favorable investor sentiment in the short term.
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IMPORTANCE 90
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