HERZOGENAURACH, Germany (Reuters) – German sports equipment manufacturer Adidas warned on Wednesday of a decline in its sales in North America this year due to excess stocks, particularly with Yeezy products.
Sales in North America at constant exchange rates are expected to decline by 6 to 9% (“high-single-digit”) in 2024, compared to growth forecast in all other regions, Adidas said in a press release on its final results .
Adidas released its preliminary results for the year at the end of January and announced 2024 forecasts well below analysts’ expectations, as profits fell due to the sale of the Yeezy brand, resulting from a partnership with the American rapper Kanye West.
“Although it is far from enough, 2023 ended better than I expected at the start of the year,” said CEO Bjorn Gulden.
Adidas said its board of directors would propose a dividend of 0.70 euros per share, unchanged from last year, and despite a net operating loss of 58 million euros last year.
(Reporting by Helen Reid, writing by Rachel More; Lina Golovnya, editing by Kate Entringer)
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