Adidas makes $437 million from Yeezy shoe sales, cutting projected loss
2023.08.03 01:59
© Reuters. FILE PHOTOS: A pair of Yeezy shoes are seen in a Foot Locker store on the day Adidas terminated its partnership with the American rapper and designer Kanye West, now known as Ye, in Garden City, New York, U.S., October 25, 2022. REUTERS/Shannon Stapleton/
LONDON (Reuters) -Adidas sales fell 5% in euro terms in the second quarter but a release of Yeezy shoes helped its profit margin increase, narrowing a projected loss, the sportswear giant said on Thursday, confirming figures released last week.
Sales of surplus Yeezy shoes generated around 400 million euros ($437 million) in the quarter, helping Adidas (OTC:) reduce its predicted loss for the year to 450 million euros, down from the 700 million euro loss previously expected.
In currency-neutral terms, sales were flat compared to the second quarter of 2022. Adidas said it now expects currency-neutral revenues to decline at a mid-single-digit rate in 2023, from a high-single-digit rate previously expected.
“The sale of the first part of the Yeezy inventory did of course help both our top and bottom line in the quarter,” said Adidas CEO Bjorn Gulden.
($1 = 0.9150 euros)
