Disappointing outlook and downside risk for sales and earnings

  • Adidas’s shares slide after 2024 targets miss expectations
  • Shares traded 8.1% lower at EUR161.86
  • Sales growth target below market expectations
  • Operating profit target significantly lower than consensus estimates
  • Analysts express disappointment and downside risk for sales and earnings projections

Shares in Adidas plunged after the company provided an outlook for 2024 that fell below expectations. The German sporting-goods company anticipates sales to start flattish in 2024, but to then improve every quarter. However, the sales growth target is below market expectations, and the operating profit target is significantly lower than consensus estimates. Analysts express disappointment and downside risk for all sales and earnings projections. The company also posted preliminary figures for 2023, which came in better than expected.

Public Companies: Adidas (ADS), Puma (PUM)
Private Companies:
Key People: Volker Bosse (Baader Helvea analyst), Adam Cochrane (Deutsche Bank analyst)

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Factuality Level: 7
Justification: The article provides factual information about Adidas’ outlook for 2024, including sales projections and operating profit targets. It also includes quotes from analysts expressing their opinions on the outlook. However, there is no indication of bias or personal perspective presented as universally accepted truth. The information provided is concise and relevant to the main topic.

Noise Level: 4
Justification: The article provides information about Adidas’ outlook for 2024 and its preliminary figures for 2023. It includes quotes from analysts and mentions market expectations. However, it lacks in-depth analysis, evidence, and actionable insights. The article mainly focuses on the company’s financial performance and does not explore the consequences of the outlook on stakeholders or hold powerful people accountable. Overall, it contains some relevant information but lacks depth and rigor.

Financial Relevance: Yes
Financial Markets Impacted: Shares in Adidas

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the financial performance and outlook of Adidas, which is relevant to financial markets. There is no mention of any extreme event.

Reported publicly: www.marketwatch.com