Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Adidas FY sales fall short of estimates

(Sharecast News) - German sportswear giant Adidas reported full-year results that fell short of estimates on Wednesday as a result of the loss of its very profitable Yeezy line following the cessation of its long-running collaboration with Kanye West. Adidas said Q4 sales fell 7.6% to €4.81bn euros, while full-year revenues dropped 4.8% to €21.43bn. If it were not for the Yeezy business, Adidas would have reported currency-neutral revenue growth of 2% in 2023.

Chief executive Bjorn Gulden noted the company was still working to recover from the loss of Yeezy line.

"Despite losing a lot of Yeezy revenue and a very conservative sell-in strategy, we managed to have flat revenues," Gulden said. "We still have a lot of work to do, but I feel very confident we are on the right track. We will bring Adidas back again."

North American sales fell 16.1% in currency-neutral terms to €5.22bn, while Latin America saw sales growth of 21.6%to €2.29bn. In Europe, the Middle East and Africa, sales dipped 0.4% to €8.23bn, while sales in Greater China grew 36.8% to €3.19bn,

Adidas also said operating profits decreased significantly, falling 59.9% from €669.0m in 2022 to €268.0m in 2023.

Looking forward, Adidas sounded a positive note for the year ahead, predicting currency-neutral revenues to increase at a mid-single-digit rate during 2024. Gulden added that modest growth was expected to take place in the first half but said the second half of 2024 should be better.

As of 1230 GMT, Adidas shares were up 0.11% at €192.96 each.

Reporting by Iain Gilbert at Sharecast.com

Share this article

Related Sharecast Articles

Goldman Sachs to scrap bonus cap for UK dealmakers
(Sharecast News) - Goldman Sachs will remove a cap on bonuses for its London-based staff, according to Sky News, with the firm now set to resume making multi-million-pound payouts to its top-performing traders and dealmakers.
Gazprom swings to $6.9bn loss as Europe sales plunge
(Sharecast News) - Russia's natural gas heavyweight Gazprom swung to huge loss in 2023 after sales to Europe dropped due to Western sanctions on Moscow.
London cabbies launch £250m legal action against Uber
(Sharecast News) - Uber Technologies is facing legal action on behalf of more than 10,500 London black cab drivers, it was confirmed on Thursday.
Peloton announces CEO departure; to cut 15% of workforce
(Sharecast News) - Peloton announced the departure of its chief executive on Thursday, alongside plans to cut around 15% of its workforce amid a restructuring programme aimed at reducing annual expenses by more than $200m.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.