Sportswear giant, Adidas, has projected a minor dip in 2023 sales, outperforming earlier forecasts.
The brand attributed this positive shift to the release of its coveted Yeezy shoes, which not only invigorated the market but also curtailed anticipated losses for the year.
This upgraded outlook comes on the heels of a remarkable 40% surge in Adidas shares year-to-date.
Investors’ renewed faith in CEO Bjorn Gulden’s leadership has been pivotal in the brand’s rebound after a tumultuous split with Ye, the artist previously known as Kanye West, due to controversial remarks.
Notably, the surplus Yeezy shoe sales contributed a staggering 400 million euros ($437 million) during the quarter, significantly denting the projected annual loss to 450 million euros—down from the previous estimate of 700 million euros.
While second-quarter 2023 sales remained steady in currency-neutral terms compared to 2022, a 5% decrease in euro terms saw revenues totaling 5.3 billion euros.
In light of these figures, Adidas now foresees a moderate currency-neutral revenue decline for 2023, a revision from the prior expectation of a more substantial drop.
Bjorn Gulden, Adidas CEO, affirmed, “The sale of the first part of the Yeezy inventory did of course help both our top and bottom line in the quarter.”
Additionally, gross margins witnessed an encouraging uptick, rising by 0.6 percentage points to 50.9%.
Adidas attributed this positive development to reduced discounting strategies.
These results reinforce the figures disclosed by Adidas in its recent trading statement.
With these strides, Adidas proves its mettle in the face of challenges, leveraging strategic releases and steadfast leadership to chart a course toward renewed success.