Adidas: 2023 to be ‘transition year,’ sees revenue down at HSD rate

"2023 will be a transition year to build the base for 2024 and 2025," said Bjorn Gulden, CEO of adidas. "We need to reduce inventories and lower discounts. We can then start to build a profitable business again in 2024." For FY23, adidas sees: Currency-neutral revenues to decline at a high-single-digit rate; Underlying operating profit to be around break-even level reflecting sales loss of around EUR 1.2 billion and corresponding negative operating profit impact of around EUR 500 million from potentially not selling Yeezy stock; Reported operating loss to be EUR 700 million including additional negative impact of EUR 500 million from potential Yeezy inventory write-off and up to EUR 200 million one-off costs.