The company is expected to generate an operating loss of €100 million at the end of 2023.Adidas has issued an updated sales forecast for 2023. The company is expected to post an operating loss of €100 million versus the €450 previously expected.
The company said its core business is recovering and performing better than expected in the third quarter. Yeezy sales are cited as the main driver of growth.
Potential Yeezy inventory write-downs were lowered fr om €400 million to €300 million. The operating profit outlook was raised from zero to €100 million. The decline in revenue excluding currency differences will be 6%, to €6 billion.
Initially, Adidas forecasted a loss of 700 million euros for 2023. For the company, it will be the first loss-making year in three decades. However, the sports giant gradually improved its profit forecast by releasing new Yeezy models.
"While the company's performance in the quarter was again positively impacted by the sale of parts of its remaining Yeezy inventory, the underlying adidas business also developed better than expected," the company said in its release.
Experts note that despite the positive dynamics, Adidas continues to lag behind Nike in the U.S. and Canada, wh ere its sales were three times lower in 2022 - 4 vs. 12 billion dollars.