from Adidas AG (isin : DE000A1EWWW0)
EQS-Adhoc: adidas AG: adidas provides top- and bottom-line outlook for 2023
EQS-Ad-hoc: adidas AG / Key word(s): Forecast/Preliminary Results
adidas AG: adidas provides top- and bottom-line outlook for 2023
09-Feb-2023 / 18:34 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
FOR IMMEDIATE RELEASE
Herzogenaurach, February 9, 2023
adidas provides top- and bottom-line outlook for 2023
adidas today published its financial guidance for 2023. While the company continues to review future options for the utilization of its Yeezy inventory, this guidance already accounts for the significant adverse impact from not selling the existing stock. This would lower revenues by around € 1.2 billion and operating profit by around € 500 million this year. Against this background, adidas expects currency-neutral sales to decline at a high-single-digit rate in 2023. The company’s underlying operating profit is projected to be around the break-even level.
Should the company irrevocably decide not to repurpose any of the existing Yeezy product going forward, this would result in the write-off of the existing Yeezy inventory and would lower the company’s operating profit by an additional € 500 million this year. In addition, adidas expects one-off costs of up to € 200 million in 2023. These costs are part of a strategic review the company is currently conducting aimed at reigniting profitable growth as of 2024.
If all these effects were to materialize, the company would expect to report an operating loss of € 700 million in 2023.
In 2022, based on preliminary unaudited numbers, adidas revenues increased 1% in currency-neutral terms. In reported terms, sales were up 6% to € 22,511 million during the 12-months period (2021: € 21,234 million). The company’s gross margin reached a level of 47.3% (2021: 50.7%) in 2022. adidas generated an operating profit of € 669 million last year (2021: € 1,986 million), reflecting an operating margin of 3.0% (2021: 9.4%). Net income from continuing operations was € 254 million in 2022 (2021: € 1,492 million).
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| Contacts: |
| Media Relations corporate.press@adidas.com Tel.: +49 (0) 9132 84-2352 Investor Relations investor.relations@adidas.com Tel.: +49 (0) 9132 84-2920 |
For more information, please visit adidas-group.com.
09-Feb-2023 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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| Language: | English |
| Company: | adidas AG |
| Adi-Dassler-Straße 1 | |
| 91074 Herzogenaurach | |
| Germany | |
| Phone: | +49 9132 84 0 |
| Fax: | +49 9132 84 2241 |
| Internet: | www.adidas-group.com |
| ISIN: | DE000A1EWWW0, US00687A1079, US00687P1049 |
| WKN: | A1EWWW, A0MNCC , 909676 |
| Indices: | DAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 1556557 |
| End of Announcement | EQS News Service |
1556557 09-Feb-2023 CET/CEST