(News Bulletin 247) – Adidas has announced its results for the first quarter of 2023. In euros, revenues decreased by 1% to 5.274 billion euros in the first quarter (2022: 5.302 billion euros).
“The first quarter ended a little better than we had expected, with stable sales and a small operating profit of 60 million euros,” notes Bjørn Gulden, director of Adidas.
Sales development was impacted by a significant reduction in sales to wholesalers as part of the company’s initiatives to reduce high inventory levels. The cessation of Yeezy activity weighed, representing a brake of around 400 million euros.
Gross margin was down 5.1p to 44.8% due to higher supply chain costs, higher discounts, inventory provisions, the negative impact of Yeezy and negative currency movements.
The inventory position improves sequentially to reach 5.7 billion euros, an increase of 25% compared to the previous year.
For 2023, Adidas continues to expect currency-neutral earnings to decline at a high single-digit rate as macroeconomic challenges and geopolitical tensions persist.
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