Adidas Increases Its FY Guidance Following Better-Than-Expected Q2 Results; Assumes Sale Of Remaining Yeezy Inventory During Remainder Of Year To Occur On Average At Cost; This Would Result In Additional Sales Of Around €150 Million And No Further Profit Contribution During Remainder Of Year; Revenues Grew 9% To € 5.822 Billion (2023: €5.343 Billion)
Portfolio Pulse from Benzinga Newsdesk
Adidas has increased its full-year guidance following better-than-expected Q2 results. The company assumes the sale of its remaining Yeezy inventory at cost, resulting in additional sales of around €150 million with no further profit contribution. Revenues grew 9% to €5.822 billion.

July 16, 2024 | 3:53 pm
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POSITIVE IMPACT
Adidas has raised its full-year guidance after reporting better-than-expected Q2 results. The company expects to sell its remaining Yeezy inventory at cost, adding €150 million in sales but no additional profit. Revenues grew 9% to €5.822 billion.
The increase in full-year guidance and strong Q2 results are positive indicators for Adidas. The sale of remaining Yeezy inventory at cost will boost sales figures, although it won't contribute to profit. Overall, the news is likely to have a positive short-term impact on Adidas' stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Adidas' improved financial outlook and strong Q2 results may put competitive pressure on Nike. However, the sale of Yeezy inventory at cost suggests Adidas is not gaining additional profit from this segment.
While Adidas' positive financial news could create competitive pressure for Nike, the fact that the Yeezy inventory is being sold at cost means there is no additional profit impact. This results in a neutral short-term impact for Nike.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50