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Earnings Call Summary | Adidas AG(ADDYY.US) Q4 2023 Earnings Conference

moomoo AI ·  Feb 2 12:14  · Conference Call

The following is a summary of the Adidas AG (ADDYY) Q4 2023 Earnings Call Transcript:

Financial Performance:

  • Adidas reported flat currency neutral sales relative to 2022, but suffered a reported decline of around 5% due to currency translation effects, leading to a sales loss of nearly EUR 1 billion.

  • The company attained an operating profit of EUR 268 million, exceeding expectations of a EUR 100 million loss.

  • Gross margin increased slightly to 47.5%.

  • The company was able to write-off and sell the excess wholesale inventory of its Yeezy line, covering costs of EUR 268 million.

  • Mid-term EBIT returns of 10% are expected by 2026 with double-digit growth projected to occur by the end of the year.

  • Exchange rate pressures and potential delivery issues associated with troubles in the Red Sea contribute to some fiscal uncertainty for the upcoming year.

Business Progress:

  • Adidas launched a new product, the Predator, and continues to broaden customer engagement and local sports recognition across their product lines.

  • An overinvestment strategy in sales and marketing is designed to enhance relationships with consumers and retailers.

  • Improvements have been observed in relationships with retailers, higher sell-through rates, and top-line growth.

  • Adidas plans to diversify its product lineup to include running lifestyle footwear within the next 18 to 24 months.

  • Growth has been noted in the lifestyle business with higher margins, and this momentum is expected to continue, especially in the European, Chinese, and North American markets.

More details: Adidas AG IR

Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.

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