Sales of Remaining Yeezy Inventory Assumed in Guidance

  • Adidas increases full-year guidance after better than expected Q3 performance
  • Revenues increased by 10% on a currency neutral basis
  • Operating profit reaches €1.2bn (£1bn)
  • Q3 revenues up to €6.44bn (£5.39bn) excluding Yeezy sales
  • Currency-neutral revenues increased 14% in the quarter
  • Third quarter operating profit at €598m (£500m including Yeezy sales contribution of €50m (£41.9m)

Adidas has increased its full-year guidance following a better than expected performance in Q3, with revenues increasing by 10% on a currency neutral basis. The company now expects its operating profit to reach €1.2bn (£1bn). Excluding Yeezy sales in both years, its currency-neutral revenues increased 14% during the quarter. Adidas’s Q3 revenues reached €6.44bn (£5.39bn) and third quarter operating profit was at €598m (£500m), including a contribution of around €50m (£41.9m) from Yeezy sales. The company assumes the sale of the remaining Yeezy inventory during the remainder of the year to occur on average at cost, resulting in additional sales of €50m (£41.9m and no further profit contribution in Q4.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Adidas’s financial performance and guidance for the year, including specific numbers and details about revenue growth and operating profit. It also explains the impact of Yeezy sales on the company’s expectations.
Noise Level: 3
Noise Justification: The article provides relevant information about Adidas’s financial performance and updates on its guidance for the year. It is not filled with irrelevant or misleading information, but it does not explore the consequences of decisions on those who bear the risks nor provide actionable insights or new knowledge that the reader can apply.
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses Adidas’ financial performance, including increased revenue and operating profit expectations for the full year. This information is relevant to investors and could impact the company’s stock price in financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in this article.

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