Adidas sees 2023 currency-neutral sales down high-single-digits

Adidas published its financial guidance for 2023. It said, "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 EUR 1.2B and operating profit by around EUR 500M 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 EUR 500 million this year," it added. In addition, Adidas expects one-off costs of up to EUR 200M in 2023. The 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, Adidas would expect to report an operating loss of EUR 700M in 2023.