Company continues to reduce high inventory levels
- Adidas posts a decline in net profit and sales for 3Q
- Net profit falls 25% to EUR259 million
- Revenue declines 6.4% to EUR6 billion
- Operating profit falls to EUR409 million
- Inventory levels decrease more than expected, down 23% on year
- Adidas backs its guidance for 2023
Adidas has announced a decline in net profit and sales for the third quarter. Net profit fell 25% to EUR259 million, while revenue declined 6.4% to EUR6 billion. Operating profit also decreased to EUR409 million. However, inventory levels decreased more than expected, down 23% compared to the previous year. Despite the decline, Adidas has backed its guidance for 2023, which includes a low single-digit decline in currency-neutral revenues and an operating loss of around EUR100 million.
Factuality Level: 8
Factuality Justification: The article provides specific figures and information about Adidas’ net profit, sales, revenue, operating profit, and inventory levels. It also includes statements from the company confirming the figures and discussing their performance. However, the article lacks additional context or analysis to fully understand the reasons behind the decline in profit and sales, and it does not provide any external sources or perspectives to verify the information.
Noise Level: 7
Noise Justification: The article provides relevant information about Adidas’ decline in net profit and sales for the third quarter, as well as its efforts to reduce high inventory levels. It includes specific figures and percentages to support its claims. However, it lacks in-depth analysis of the long-term trends or possibilities for the company, and it does not explore the consequences of these results on those who bear the risks. Additionally, it does not provide actionable insights or solutions for the reader.
Financial Relevance: Yes
Financial Markets Impacted: Adidas
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to the financial performance of Adidas, reporting a decline in net profit and sales for the third quarter. There is no mention of an extreme event.
Public Companies: Adidas (ADS)
Key People:
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