Adidas bounces back with strong first quarter performance

  • Adidas raises profit outlook after better-than-expected first quarter
  • Quarterly operating profit hits £286.6m, compared to £51.2m the year prior
  • Adidas sold £128m worth of Yeezy products during the quarter
  • Rest of Yeezy stock expected to be sold for £171m later in the year
  • Adidas to donate proceeds from remaining Yeezy stock to charity in 2023

Adidas has raised its profit outlook for the year after a better-than-expected first quarter. The sportswear brand reported a quarterly operating profit of £286.6m, a significant increase from £51.2m the previous year. This positive performance comes after Adidas experienced its first losses in 30 years due to the financial fallout from ending its partnership with Kanye West. Despite the setback, Adidas managed to sell £128m worth of Yeezy products during the quarter, generating a profit of approximately £43m. The company plans to sell the remaining Yeezy stock for around £171m later this year, without expecting any additional profit. In a philanthropic move, Adidas has pledged to donate some of the proceeds from its remaining Yeezy stock to charity in 2023.

Factuality Level: 3
Factuality Justification: The article contains irrelevant information about Kanye West’s antisemitic and racist remarks, as well as details about Adidas’ Yeezy products and their profits. The information about Ted Baker becoming a high street casualty is also unrelated to the main topic. The article lacks focus and includes unnecessary background information.
Noise Level: 2
Noise Justification: The article provides relevant information about Adidas raising its profit outlook after a better-than-expected first quarter. It also includes details about the financial impact of the Yeezy products and the company’s decision to donate proceeds to charity. However, the article contains some irrelevant information about Kanye West’s antisemitic remarks and racist comments, which do not directly relate to Adidas’ financial performance.
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’ improved profit outlook for the year, indicating financial relevance. There is no mention of an extreme event.

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