- Adidas AG ADDYY reported a 1% decline in currency-neutral revenues for fourth-quarter FY22. The decrease in revenue was due to impact of about €600 million caused by the termination of Yeezy partnership at the end of October.
- Also, a 50% revenue decline in Greater China due to the challenging market environment, company-specific challenges, and inventory takebacks weighed on revenue.
- However, revenues in Latin America, Asia-Pacific, and EMEA grew at double-digit rates.
- Gross margin declined by 990 basis points to 39.1% versus 49% last year. The fall was driven by higher supply chain costs and increased promotional activities.
- Adidas recorded an operating loss of €(724) million compared to a profit of €66 million last year.
- Dividend: Adidas' executive and supervisory board will recommend slashing the dividend to €0.70 from €3.30 in the annual general meeting on May 11.
- The supervisory board has extended the appointment of Harm Ohlmeyer as Chief Financial Officer of the company by another three years until the beginning of 2028.
- Outlook: For FY23, Adidas expects currency-neutral revenues to decline at a high-single-digit rate as macroeconomic challenges, and geopolitical tensions persist.
- While the company continues to review future options for utilizing its Yeezy inventory, the guidance reflects the revenue loss of around €1.2 billion from potentially not selling the existing stock.
- Adidas expects to report an operating loss of € (700) million in 2023.
- Price Action: ADDYY shares closed at $76.03 on Tuesday.
- Photo Via Company
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
