Activewear Giant Continues to Thrive Without Kanye West’s Influence

  • Adidas raises guidance again as Q2 sales surge 9%
  • Excluding Yeezy sales, currency-neutral sales were up by 16% in Q2
  • Yeezy revenue down almost 50% year over year
  • Only 200 million euros of Yeezy inventory expected for the year ahead
  • Adidas reports a 50.8% gross margin, with improvements in underlying margins
  • Strength across Adidas’ business with products like Samba and Gazelle

Adidas has reported a strong Q2 sales surge of 9%, even without the influence of its popular Yeezy line. Excluding Yeezy sales, currency-neutral sales increased by an impressive 16%. The company expects only 150 million euros in sales from remaining Yeezy inventory for the year ahead. Adidas’ gross margin remains at 50.8%, with improvements in underlying margins due to better sell-throughs and reduced discounting. Products like Samba and Gazelle are driving growth across both DTC and wholesale channels.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Adidas’ financial performance and its Yeezy inventory situation. It also includes insights from Wedbush analysts on the company’s sales and product performance. The article is focused on the main topic without any significant digressions or irrelevant details.
Noise Level: 3
Noise Justification: The article provides relevant information about Adidas’ financial performance and its Yeezy inventory situation. It also mentions improvements in the company’s gross margin and product sell-throughs. However, it lacks a comprehensive analysis of long-term trends or possibilities, accountability, scientific rigor, and actionable insights for readers.
Financial Relevance: Yes
Financial Markets Impacted: Adidas’ stock price and its competitors’ stocks may be impacted by the company’s performance and future prospects.
Financial Rating Justification: The article discusses Adidas’ financial performance, specifically regarding Yeezy sales and overall growth, which can affect investor sentiment and potentially impact the stock prices of both Adidas and its competitors like Nike.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article. It discusses Adidas’ Yeezy inventory and its impact on the company’s sales and margins.

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