Yeezy leftovers boost Q1 results, but Adidas shows strength without them
- Adidas raises guidance for the year
- Yeezy leftovers boost Q1 results
- Revenues grew 3.5% YoY to 5.5 billion euros
- Operating profit reached 336 million euros
- Currency-neutral revenues rose 8% on a YoY basis
- Full-year outlook expects mid- to high-single-digit revenue growth
- Operating profit expected to reach about 700 million euros
- Adidas gaining momentum without Yeezy
- Organic top-line growth of 5% YoY
- Strength in retro styles and performance categories
Adidas has raised its guidance for the year after its decision to sell its remaining Yeezy inventory at cost boosted its Q1 results. The latest Yeezy drop generated significant revenue and operating profit. Overall, Q1 revenues grew 3.5% YoY to 5.5 billion euros, and operating profit reached 336 million euros. The brand increased its full-year outlook, expecting mid- to high-single-digit revenue growth and an operating profit of about 700 million euros. Despite the success of Yeezy, Adidas is also gaining momentum without it. Excluding the impact of Yeezy inventory, currency-neutral Q1 revenues rose 5% YoY, driven by strong demand for retro styles and performance categories like soccer and basketball. Analysts have praised Adidas’ momentum and escalating brand heat, highlighting particular strength in the company’s Terrace lines. The cleaner inventory has allowed Adidas to avoid discounting. The revised guidance could improve further if some Yeezy goods are sold at a profit. Overall, Adidas’ turnaround under CEO Bjørn Gulden is making good progress.
Factuality Level: 7
Factuality Justification: The article provides detailed information about Adidas’ Q1 results, including revenue, operating profit, and outlook. It also mentions the impact of Yeezy products on the company’s performance. However, the article includes unnecessary background information about the dissolution of the partnership with Kanye West and repetitive details about the impact of Yeezy drops on previous guidance upgrades.
Noise Level: 3
Noise Justification: The article provides detailed information about Adidas’ Q1 performance, particularly focusing on the impact of Yeezy products. It includes revenue figures, operating profit, and guidance updates. The article also mentions the dissolution of the partnership with Kanye West and the brand’s overall performance without Yeezy factored in. The information is relevant, supported by data, and stays on topic without diving into unrelated territories.
Financial Relevance: Yes
Financial Markets Impacted: Adidas
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses Adidas’ Q1 results and the boost in revenue and profit from the sale of its Yeezy inventory. While there is no mention of an extreme event or its impact, the financial relevance is clear as it pertains to Adidas’ financial performance.
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