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Adidas has raised its full-year guidance following better than expected preliminary results for Q3 2023.
The German sportswear retailer noted that the company’s performance was “positively impacted” by the sale of parts of its remaining Yeezy inventory. As a result, the underlying business developed “better than expected”.
The company now expects to report an operating loss of €100m (£86.9m) in 2023, compared to the previous estimation of €450m (£391m).
Revenues are expected to decline at a low-single-digit rate in 2023, up from the previous guidance predicting a decline at a mid-single-digit rate. At the same time, underlying operating profit, excluding any one-offs related to Yeezy, is now anticipated to reach a level of €100m (£86.9m).
Including the positive impact from the two Yeezy drops in Q2 and Q3, the potential write-off of the remaining Yeezy inventory is now around €300m (£260m) compared to the previously reported €400m (£347m), and one-off costs related to the strategic review of up to €200m (£173m) which remained unchanged.
Adidas is set to release the results for the first nine months of the year on 8 November.
