Adidas Continues To Expect Unfavorable Currency Effects To Weigh Significantly On Company's Profitability This Year; Excluding Yeezy Sales In Both Years, Currency-Neutral Revenues Increased 16% During Quarter; These Effects Are Negatively Impacting Both Reported Revenues And Gross Margin Development In 2024
Portfolio Pulse from Benzinga Newsdesk
Adidas expects unfavorable currency effects to significantly impact its profitability this year. Excluding Yeezy sales, currency-neutral revenues increased by 16% during the quarter. These effects are negatively impacting both reported revenues and gross margin development in 2024.
July 16, 2024 | 3:54 pm
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NEGATIVE IMPACT
Adidas expects significant negative impact on profitability due to unfavorable currency effects, despite a 16% increase in currency-neutral revenues excluding Yeezy sales.
The unfavorable currency effects are expected to significantly impact Adidas' profitability, reported revenues, and gross margin development in 2024. This negative outlook is likely to weigh on the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Adidas expects significant negative impact on profitability due to unfavorable currency effects, despite a 16% increase in currency-neutral revenues excluding Yeezy sales.
The unfavorable currency effects are expected to significantly impact Adidas' profitability, reported revenues, and gross margin development in 2024. This negative outlook is likely to weigh on the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Adidas' challenges with unfavorable currency effects may indirectly benefit Nike as a competitor in the market.
As Adidas faces profitability challenges due to unfavorable currency effects, Nike may benefit as a competitor in the market. This could lead to a positive impact on Nike's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50