Sales of the German sports footwear and clothing manufacturer Adidas in the first quarter fell by one percent year-on-year to EUR 5.27 billion (CZK 123.5 billion). The company said in a statement today. But the result exceeded analysts’ estimates. The company has yet to decide what to do with the bunch of unsold Yeezy sneakers left over from last year’s collaboration with rapper Ye, formerly known as Kanye West.
Analysts surveyed by the company itself had expected revenue to fall by four percent year-on-year.
Analysts surveyed by the company itself had expected revenue to fall by four percent year-on-year. The company, which saw its profit fall sharply last year, posted an operating profit of €60 million and a lower gross margin at the start of this year due to higher supply chain costs and larger discounts. The full-year outlook was confirmed by the company.
The company thrived in Latin America and parts of Asia. The company is increasing production of classic Samba, Gazelle and Campus sneakers to meet the high demand.
But the current year will not be satisfactory, CEO Björn Gulden announced. But Adidas is already focused on building a strong foundation for a better 2024, he said.
The company did not say what it intends to do with Yeezy’s 1.2 billion euro unsold merchandise stemming from a cancelled partnership with rapper and designer Ye. The end of the Yeezy business reduced the company’s revenue by approximately 400 million euros in the quarter.