BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Adidas AG (ADDYY.PK, ADDDF.PK) reported second-quarter net income from continuing operations of 96 million euros compared to 360 million euros, prior year. Earnings per share from continuing operations was 0.48 euros compared to 1.88 euros. Operating profit was 176 million euros compared to 392 million euros. The operating margin was 3.3% compared to 7.0%. The operating profit included extraordinary expenses of around 160 million euros related to one-off costs, donations and accruals for future donations. The sale of the Yeezy product positively impacted adidas' operating profit by an incremental amount of around 150 million euros.
In euro terms, revenues declined 5% to 5.34 billion euros. Currency-neutral revenues were flat versus the prior-year level. The company said the top-line development reflects improved sell-out trends and conservative sell-in strategy.
Adidas now expects currency-neutral revenues to decline at a mid-single-digit rate in 2023. Previously, the company projected a decline at a high-single digit rate. The company now expects to report an operating loss of 450 million euros in 2023. Previously, the company projected a loss of 700 million euros. The company's underlying operating profit - excluding any one-offs related to Yeezy and the ongoing strategic review - is still anticipated to be around the break-even level.
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