New CEO Bjørn Gulden Takes the Reins Amidst Market Struggles
- Adidas lowers full year guidance for FY22
- Termination of Yeezy partnership with Kanye West affects revenue growth
- Increasing supply chain costs impact net income
- Greater China sales drop by 18.9% in Q3
- Currency-neutral sales up 4% outside Greater China
- E-commerce sales grow in EMEA, North America, and Latin America
- Adidas appoints Bjørn Gulden as new CEO
- Kasper Rorsted steps down on 11 November
Adidas has lowered its full-year guidance for FY22 due to the termination of its Yeezy partnership with Kanye West and increasing supply chain costs. The company’s gross margin is expected to be around 47% in 2022, while its operating margin is forecast at 2.5%. In Q3, Adidas saw a 18.9% drop in sales in Greater China, but currency-neutral sales grew by 4% outside the region and e-commerce sales increased in EMEA, North America, and Latin America. The company has appointed Bjørn Gulden, Puma’s CEO, as its new CEO after Kasper Rorsted steps down on 11 November. Adidas faces a challenging market environment with higher promotional activity due to inventory buildup across the industry.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Adidas’ financial performance, including guidance for FY22, the impact of terminating the Yeezy partnership with Kanye West, and the appointment of Bjørn Gulden as CEO. It also includes specific sales figures for different regions and insights from company executives.
Noise Level: 3
Noise Justification: The article provides relevant information about Adidas’ financial performance and changes in leadership but lacks in-depth analysis or exploration of long-term trends or consequences of decisions.
Financial Relevance: Yes
Financial Markets Impacted: Adidas’ stock price and other sportswear companies
Financial Rating Justification: The article discusses Adidas’ financial performance, guidance changes, and CEO appointment, which can impact the company’s stock price and potentially affect the sportswear industry as a whole.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: Adidas’ financial situation is not considered an extreme event, but rather a significant business development. The company has lowered its full-year guidance and experienced a drop in income and net income due to various factors such as the termination of its Yeezy partnership with Kanye West, supply chain costs, and currency impacts.
www.retailsector.co.uk