Sportswear Retailer’s Profitability Improves with Yeezy Inventory Sale
- Adidas raises full-year guidance due to better than expected Q3 performance
- Yeezy sale boosts company’s performance
- Operating loss reduced from €450m to €100m
- Revenues decline now expected at low-single digit rate
- Underlying operating profit anticipated at €100m
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 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.
Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about Adidas’s financial performance and updates on its guidance for the year. It reports facts and figures without any sensationalism or personal perspective.
Noise Level: 4
Noise Justification: The article provides relevant information about Adidas’s financial performance and updates on its guidance for the year. It includes specific numbers and details about the impact of Yeezy sales and inventory. However, it could benefit from more analysis or context to provide a deeper understanding of the company’s overall performance and industry trends.
Financial Relevance: Yes
Financial Markets Impacted: Adidas’ stock price and other sportswear companies
Financial Rating Justification: The article discusses Adidas raising its full-year guidance due to better than expected Q3 results, which impacts the company’s financial performance and can affect the stock price. It also mentions changes in expectations for revenue and operating profit, which can impact financial markets and other sportswear companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:
www.retailsector.co.uk