Performance Product Drives Footwear Sales in adidas' 2023 Earnings Update
Via adidas
have announced their latest financial results, which the brand says were ‘better than expected’. In euro terms, the Three Stripes finished Q4 with a 7.6 per cent drop in sales to 4.81 billion euros, while revenue for the entire year came in at 21.43 billion euros – a 4.8 per cent drop year-on-year. Currency-neutral revenues remained flat. Despite this, the brand cited growth in the footwear category, where currency-neutral sales rose 4 per cent in 2023, bolstered by double-digit growth in football as well as specialist and US Sports.
The company is still grappling with losing their line, having ended their partnership with Ye in 2022. adidas did sell off some of the remaining Yeezy products last year though, and this added 750 million to their 2023 sales figures.
The Yeezy issue caused a particular hit in North America, where sales fell 16.1 per cent to 5.22 billion euros. Sales also dipped by 0.4 per cent in the EMEA region. The brand did see growth in Greater China and the Asia-Pacific region, as well as a significant increase of 21.6 per cent in the Latin American market.
The Three Stripes had originally predicted an operating loss of around 700 million in 2023; however, the final result ended up being around 268 million euros. In a statement, CEO Bjorn Gulden said, ‘Although by far not good enough, 2023 ended better than what I had expected at the beginning of the year. Despite losing a lot of Yeezy revenue and a very conservative sell-in strategy, we managed to have flat revenues.'
He continued, ‘We still have a lot of work to do, but I feel very confident we are on the right track. We will bring adidas back again.’