Yeezy Discontinuation Affects North America, EMEA Grows Despite Challenges
- Adidas reports flat Q1 revenues
- 20% dip in US sales due to Yeezy discontinuation
- EMEA sales up 4% driven by Wholesale growth
- Footwear revenues grow 1% amidst strong Performance categories performance
- Apparel sales decline 3% due to high inventory levels
- Operating profit at €60m, net loss of €24m
- CEO Bjørn Gulden remains optimistic for the rest of the year
Apparel company Adidas reported flat currency-neutral revenues in Q1 compared to the same period last year. The US market saw a 20% dip in sales due to the discontinuation of the Yeezy business, while Europe, Middle East, and Africa (EMEA) grew by 4%. Footwear revenues increased by 1%, driven by strong performance in football, running, outdoor, and tennis categories. Apparel sales declined 3% due to high inventory levels. Adidas’s operating profit was €60m with a net loss of €24m after taxes. CEO Bjørn Gulden remains optimistic about the rest of the year despite challenges. The company expects a high-single-digit decline in full-year 2023 revenues due to recession risks and uncertainty in North America and Europe, as well as potential €1.2bn loss from unsold Yeezy stock.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Adidas’ financial performance in Q1, including revenue figures, growth rates by region, and the company’s outlook for the future. It also includes a quote from the CEO that adds context to their strategy and expectations.
Noise Level: 3
Noise Justification: The article provides relevant information about Adidas’ financial performance and the CEO’s perspective on the company’s future prospects, but it lacks in-depth analysis or exploration of long-term trends or possibilities.
Financial Relevance: Yes
Financial Markets Impacted: Adidas’ stock price, other apparel companies
Financial Rating Justification: The article discusses Adidas’ financial performance, including revenue growth in some regions and decline in others, as well as the impact of Yeezy business discontinuation on their sales. It also mentions expectations for future revenue decline and profitability.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
www.retailsector.co.uk