Adidas’ Q2 Revenue Grows 9% to €5.82 Billion

  • Adidas raised full-year guidance after strong Q2 results
  • Currency-neutral revenue grew 9% to €5.82 billion
  • High single-digit revenue growth expected for the year
  • Operating profit increased to €346 million from €176 million
  • Yeezy inventory estimated to generate additional €150 million in sales this year

Adidas has upgraded its sales and earnings guidance for the year following better-than-expected second quarter results, with currency-neutral revenue growing at a high single-digit rate. The German sportswear company now expects around €1 billion in operating profit, up from a previous forecast of €700 million. Adidas’s Q2 revenue grew 9% to €5.82 billion on a currency-neutral basis, with underlying gross margin improving due to better sales across categories and reduced discounting. However, unfavorable currency effects will continue to impact profitability this year.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Adidas’s financial performance and guidance upgrade based on their second quarter results. It includes relevant details about revenue growth, operating profit, and the impact of Yeezy inventory. The article is not sensational or misleading, and there are no signs of personal perspective being presented as a universally accepted truth.
Noise Level: 2
Noise Justification: The article provides relevant information about Adidas’s better-than-expected second quarter results and an upgrade in sales and earnings guidance. It also mentions the impact of unfavorable currency effects on profitability and the remaining Yeezy inventory. The article stays on topic and supports its claims with specific figures, making it informative and relevant.
Public Companies: Adidas (ADDYY)
Key People: Pierre Bertrand (Writer)

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Financial Relevance: Yes
Financial Markets Impacted: Adidas’s stock price and the sportswear industry
Financial Rating Justification: The article discusses Adidas raising its sales and earnings guidance due to better-than-expected second quarter results, which could impact the company’s stock price and potentially affect other companies in the sportswear industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.wsj.com