LONDON (Reuters) – Adidas posted better-than-expected first-quarter results on Friday, driving the stock higher as investors bet on a rebound from the German sporting goods maker.
Despite a 1% drop in sales, Adidas posted an operating profit of 60 million euros, beating analysts’ expectations of 15 million euros.
On the London Stock Exchange, the title Adidas was up 5.6% at 08:03 GMT.
The shutdown of the Yeezy business weighed on sales in the quarter by approximately 400 million euros, Adidas said, primarily in the North America, Greater China and EMEA regions.
Adidas, which last year ended a lucrative partnership with American rapper Kanye West, who now calls himself Ye West, has not said what it plans to do with its stockpile of unsold Yeezy shoes.
“The decline in lifestyle and the loss of Yeezy is of course hurting us,” said CEO Bjorn Gulden, who said he was optimistic for the rest of the year.
The results show Adidas is ahead of its fiscal year growth forecast, even though its transformation process is still underway and concerns remain about the health of U.S. and European consumers, Jefferies said in a statement. note.
Group sales over one year remained stable at 5.27 billion euros, while analysts had expected a 4% drop, according to a consensus compiled by Adidas.
The North America region was the most affected by the shutdown of Yeezy activity, with sales at constant exchange rates down 20% year-on-year. Sales in the Greater China region fell 9%, while sales in the EMEA region increased by 4%.
(Report Helen Reid, Augustin Turpin, edited by Kate Entringer)
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