In a year marked by significant challenges, sportswear giant adidas has showcased remarkable resilience in its financial performance for 2023. Despite the departure of its popular YEEZY line and the termination of its collaboration with Kanye West, the German company reported better-than-expected figures, demonstrating its ability to navigate turbulent waters.
Net sales for the year totaled €21.4 billion EUR, representing a slight decrease of 4.8% from the previous year on a reported basis, yet remaining flat on a currency-neutral basis. The unexpected strength in operating profit, reaching €268 million EUR, surpassed initial expectations by almost €1 billion EUR, largely attributed to the decision to sell off remaining YEEZY inventory.
While footwear sales experienced a modest 4% increase, apparel faced a 3% decline, and accessories saw a 3% uptick. The Lifestyle category took a hit due to the absence of the YEEZY collaboration, but other segments like Originals, Skateboarding, and Basketball exhibited promising growth.
Looking ahead to 2024, adidas anticipates mid-single-digit revenue growth and aims for an operating profit of approximately €500 million EUR. Despite the challenges of the past year, adidas remains optimistic about its future prospects, emphasizing its commitment to adaptability and strategic planning in a dynamic market landscape.
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