Sportswear and footwear maker Adidas posted an operating loss of €2022m in the fourth quarter of 724 and a net loss of €513m, up from a profit of €66m a year earlier. Reason - termination of contract with Kanye West and, accordingly, the cessation of production of the Yeezy sneaker line. This line of products, according to analysts, accounted for 15% of the company's net profit.
The deterioration was also affected by a 50% drop in sales in Greater China (PRC, Hong Kong and Taiwan) to 520 million euros. In addition, in the reporting fourth quarter of 2022 in the region uniting Europe, the Middle East and Africa (EMEA), sales (excluding currency fluctuations) increased by 12,2%, to 2,07 billion euros, in North America - by 6 %, to 1,54 billion euros, in the Asia-Pacific region, the figure increased by 16,2%, to 606 million euros, and in Latin America, the growth was 47%, to 544 million euros.
At the end of 2022, the German sports giant's revenue increased by 6% to 22,51 billion euros, while operating profit fell three times, to 669 million euros.
For the first time in 30 years, the company is forecasting an annual loss based on 2023 results. Adidas expects its FX-free revenue to fall by around 10% and an operating loss could reach 700 million euros.
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