BERLIN: German sportswear giant Adidas reported a fall in its preliminary operating profit for the third quarter on Tuesday, slipping from €564 million (US$595 million) to €409 million, reported German news agency (dpa).
Quarterly currency-neutral revenues increased one per cent versus the prior year level. But in euro terms, the company’s revenues declined six per cent to €5.999 billion from the prior year.
The company said its performance in the third quarter was again impacted by the sale of its remaining Yeezy inventory.
The underlying Adidas business also developed better than expected.
Adidas has updated its full year 2023 guidance. The company now expects currency-neutral revenues to decline at a low-single-digit rate in 2023.
Previously, it was expected to decline at a mid-single-digit rate.
The company’s underlying operating profit, excluding any one-offs related to Yeezy and the ongoing strategic review, is now anticipated to reach a level of around €100 million in 2023. Previously, it was expected to be around break-even level.
Adidas now expects to report an operating loss of around €100 million in 2023 compared to the prior outlook of loss €450 million. – BERNAMA-dpa
