Adidas AG FRANKFURT: ADS obuwie i odzież sportowa

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(Reuters) - As 32 teams battle for the World Cup in Qatar, Adidas (OTC:ADDYY) and Nike also hope their shares can score a goal.

With FIFA projecting at least 5 billion viewers, the world's highest profile soccer event is a major opportunity for sports apparel makers marketing their jerseys, boots and other products with teams and individual players.

Adidas shares lost 6% during the month-long 2018 World Cup, when heavily favored Germany, an Adidas team, was knocked out early and the FIFA tournament was won by France, a Nike team. Nike gained 4% during the same period, beating the S&P 500's 1% gain.

In its quarterly conference call on Nov. 9, Adidas said it expects sales of about 400 euros ($415 million) related to the World Cup, which would amount to around 2% of additional annual revenue.

Nike did not immediately respond to a request for comment about the importance of the World Cup on its sales.

While soccer-related merchandise accounts for a fraction of both Adidas and Nike's overall businesses, hype around the World Cup and team jerseys can provide a halo effect driving sales of other kinds of merchandise, said Wedbush analyst Tom Nikic.

"If somebody in Germany buys a World Cup jersey, do they also buy a new pair shoes? Or if an Adidas sponsored team wins the whole thing, in the euphoria of winning the World Cup, do people buy more jerseys than they otherwise would have? That's where you can see some variability," Nikic said.

Nike is providing jerseys for 13 teams in this year's Cup, including Brazil, France and the United States, overtaking Adidas as the leader in World Cup jerseys. Seven teams are kitted out in Adidas jerseys, including soccer powerhouses Germany, Spain and Argentina.

Six countries are playing in Puma jerseys, with New Balance and other companies making up the remainder.

Four days into World Cup, Nike teams have accumulated 15 points, while Adidas-clad teams have accumulated 11 points.

So far during the tournament, shares of Nike have climbed over 1%, while Adidas and Puma are each down more than 3%.

Betting odds currently favor Nike teams Brazil and France as most likely to win the 2022 Cup.

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Adidas shrugs as World Cup goes from bad to worse with German exit

Investing.com -- How are the mighty fallen. The time was when Adidas (ETR:ADSGN) stock would fall heavily if the German national soccer team ever made an early exit from the World Cup. Defeat at, say, the quarter-final stage (such as 1994 or 1998), would depress merchandise sales in the company's home market so much that it would affect the company's global numbers.

No more. By 05:40 ET (10:40 GMT) in the morning after the German national side was eliminated at the group stage for the second World Cup running. Adidas stock opened with a resigned shrug, falling only 0.1% at the open, before eking out a gain of 0.3%.

The main reason, of course, is that Adidas has outgrown its home market enormously in the last 20 years: even the Europe, Middle East, and Africa region, which includes Germany, only accounts for one-third of its global sales. That also means it has other, bigger problems to worry about these days, such as a consumer boycott in China and the implosion of a successful business partnership with rapper Kanye West.

It's also possible that Germany's performances at major tournaments since 2014 have led to more realistic expectations at Adidas with regard to inventory management. It's the third time in a row that the team has failed to reach the quarter-final stage - an unprecedented fallow streak for the four-time world champions. And again, Adidas currently has much bigger inventory problems to worry about, as a surprise slowdown in consumer spending led to a 63% rise in unsold stock in its latest quarterly report.

But the tournament is going badly for Adidas in other ways too. Rival Nike (NYSE:NKE) has a dominant role as official kit supplier among the other teams, having tournament favorites including Brazil, France, England, Portugal, and the Netherlands in its stable, as well as surprise successes Australia and the U.S.A. By contrast, two of Adidas' other big hopes - Belgium and Mexico - have already been knocked out alongside Germany. Its hopes now rest on Lionel Messi's Argentina, Alvaro Morata's Spain, and, ironically, Japan.

A victory for Nike in Qatar would be a bitter pill to swallow for Adidas, an evergreen sponsor of the FIFA World Cup. But for some, even that may not be the worst-case outcome. Puma (ETR:PUMG) still has a couple of horses in the race, albeit they're long shots: Switzerland, Senegal, Ghana, and Uruguay. Should any of those end up lifting the trophy, the embarrassment could be acute for Adidas' new CEO Bjørn Gulden, who only last month agreed to leave Puma for its bigger neighbor.

Adidas and Puma were founded by two brothers, Adolf and Rudolf Dassler. Both companies still have their headquarters in the Bavarian town of Herzogenaurach.

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Adidas forecasts high single-digit sales decline in 2023

BERLIN (Reuters) -Adidas on Thursday flagged that it expects a high single-digit decline in sales this year after missing its own forecasts with a rise of just 1% in 2022 revenue in currency-neutral terms.

The sporting goods maker, which last October put its business partnership with rapper and fashion designer Kanye West under review, said not selling its existing Yeezy stock could reduce revenue by around 1.2 billion euros ($1.29 billion) in 2023 and operating profit by around 500 million euros to around break-even.

"While the company continues to review future options for the utilisation of its Yeezy inventory, this guidance already accounts for the significant adverse impact from not selling the existing stock," it said in a statement.

Writing off the Yeezy inventory altogether would lead to an additional 500 million euro drop in operating profit, it said, along with one-off costs in 2023 of up to 200 million euros as part of a review to return to profitable growth in 2024.

That amounted to a worst-case scenario of a 700 million euro loss this year, the statement warned.

Adidas (OTC:ADDYY) had lowered its full-year forecast in October to mid-single digit percentage revenue growth and a 4% operating margin in light of weaker demand in China and Western markets and one-off expenses related to exiting from Russia.

But Thursday's results showed the company had fared worse than it expected, yielding an operating margin of just 3%.

It will report full results for the year on March 8.

https://www.investing.com/news/stock-ma ... 23-2999763

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Adidas -10%

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Nike, Adidas shoe supplier Pou Chen to slash 6,000 jobs in Vietnam -sources

HANOI (Reuters) -Taiwan's Pou Chen Corp, the world's largest maker of branded sports footwear, plans to cut around 6,000 jobs at its Ho Chi Minh City plant in Vietnam due to weak demand, two local officials familiar with the company's plans said on Tuesday.

The firm's Pouyuen Vietnam factory will cut 3,000 jobs this month and not extend labour contracts for another 3,000 workers later this year, the officials said, declining to be identified because they were not authorised to speak to media.

The Pouyen Vietnam factory supplies global companies such as Nike Inc (NYSE:NKE). and Adidas AG (ETR:ADSGN) and is one the biggest employers in Ho Chi Minh City, with 50,500 workers.

Pou Chen said the Vietnam factory planned to cut no more than 3,000 staff in the latest round of layoffs amid uncertainty over the macroeconomic outlook, and the impact on operations would be limited.

"The company will prudently respond to the dynamic changes in the business environment," Pou Chen said in a filing to the Taiwan bourse.

Pou Chen shares fell 1.2% in early afternoon trade in Taiwan in a broader market that was down just 0.1%.

Telephone calls to a factory labour union official were not answered.

The plan to cut jobs marks a reversal for the company that in 2021 faced a labour shortage and manufacturing disruption in Vietnam due to the coronavirus pandemic.

The Southeast Asian country is a global hub for manufacturing, and its economy in 2022 grew at the fastest pace in decades, but economists have warned of headwinds, with weakening global demand starting to impact trade shipments.

Vietnam's exports in January fell 26% from a year earlier, while imports were down 24%. A decline in imports may indicate a future contraction in industrial production as firms cut purchases of materials and equipment for production.

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Adidas (ETR:ADSGN) stock fell 1.2% after the German sportswear retailer announced plans to slash its dividend as a consequence of the financial hit the sportswear giant took after the termination of its partnership with rapper and fashion designer Ye (Kanye West).

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Investing.com -- Adidas AG (ETR:ADSGN) slumped to a worse-than-expected operating loss in the fourth quarter after sales were hit by its dispute with rapper Ye and a rise in input expenses.

The German sportswear company slumped to an operating loss of €724 million (€1 = $1.0546) for the three months to the end of December, down from a profit of €66M in the same period in the prior year. Bloomberg consensus estimates had seen the loss at €717M.

Quarterly revenues declined by 1%, which Adidas said stemmed from a negative impact of €600M related to its decision to terminate its business partnership with Ye - the performer formerly known as Kanye West - in October after he made a series of controversial remarks. The discontinuation of the so-called "Yeezy" line of products, previously a solid source of top-line growth, had a "particularly strong impact" on North American demand, Adidas noted.

Sales slipped by 50% in China as well due to a tough market environment as the country continues to recover from strict COVID-19 regulations.

"[C]ompany-specific challenges as well as significant inventory takebacks weighed on the company’s top-line development in the quarter," Adidas added.

Elevated supply chain costs and a jump in promotional spending also weighed on gross margin, which decreased by 9.9 percentage points to 39.1%. The fall came despite price hikes designed to help offset these pressures.

Adidas reiterated a warning issued in February that if it decides not to repurpose any of its Yeezy branded products going forward, the remaining unsold inventory will be written off, lowering operating profit by €500M and revenue by around €1.2 billion in its current financial year.

Meanwhile, the firm said it expects to be hit by one-off costs of up to €200M as part of a wider review of its operations.

As a result, Adidas predicted it could now report an annual operating loss of €700M, while currency-neutral sales are seen declining at a high-single-digit rate this year. On an underlying basis, operating profit is forecast to be "around the break-even level."

“2023 will be a transition year to build the base for 2024 and 2025,” said chief executive officer Bjørn Gulden in a statement. “We need to reduce inventories and lower discounts. We can then start to build a profitable business again in 2024."

Shares in Adidas were in the red in early trading on Wednesday.

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Adidas, burnt by Kanye West split, seeks a new focus

LONDON (Reuters) -Adidas, burnt by the end of its tie-up with the artist formerly known as Kanye West, needs a new focus but should think more tactically about fresh celebrity partnerships and not count so much on one personality, industry experts said.

New chief executive Bjorn Gulden on Wednesday stood by the company's decision to cut ties with the rapper, known as Ye since 2021, but also pointed to the unique value of the Yeezy shoe brand, which became a key profit driver.

Sportswear firms have for years worked with celebrities, in lucrative but potentially risky deals. Speaking to reporters on Wednesday, Gulden said Adidas (OTC:ADDYY) would keep partnering not just with athletes but celebrities and artists.

"It's not a matter of either/or, you have to do both," he said. "You build credibility as a performance brand by being with athletes, but there's very few athletes that you can do lifestyle with."

Gulden did, however, hint at a change of emphasis at Adidas, saying the company needs to refocus on its core.

"You will see us invest in more sports, and be wider again than we have been, because that is also the DNA of this company," he said.

Gulden, who took the reins on Jan. 1, has pledged to turn Adidas around after it warned of a possible 700 million euro operating loss this year as a result of cutting ties with Ye.

The scale of the hit shocked investors as Adidas had not previously disclosed the revenue generated by Yeezy, the result of what the company said in 2016 was "the most significant partnership ever created between a non-athlete and an athletic brand".

Six years after calling Ye a "creative pioneer" with "visionary imagination", Adidas ended the collaboration citing "unacceptable, hateful and dangerous" comments made by the star on social media and in interviews starting in October last year.

In learning from this episode, Adidas could be more cautious in selecting celebrities to partner with, and make sure it spreads its bets, said Cristina Fernandez, senior research analyst at Telsey Advisory Group in New York.

"To me it's about diversification, but also about that specific celebrity or athlete maybe not being as risky as this one was."

One example of a long-lived and lucrative relationship is the 38-year partnership between U.S. sportswear giant Nike (NYSE:NKE) and Michael Jordan for the Air Jordan line of basketball shoes and clothing.

The Jordan brand brought in $5.1 billion of sales in Nike's 2022 fiscal year, up 7% from 2021, according to the company's 2022 annual report.

While Adidas has worked with celebrities including Beyonce, Pharrell Williams, Stella McCartney and Rita Ora, and last month launched a new label with actor Jenna Ortega, the Yeezy line has been the most successful.

"Partnerships with celebrities clearly play a big role, but there is a risk because the person you partner with can go off the rails," said Mario Ortelli, managing director at luxury and high-end retail advisory firm Ortelli & Co.

Ortelli said Adidas has been spreading itself too thinly with celebrity partnerships and collections with brands including Balenciaga, Gucci, Prada (OTC:PRDSY), and Moncler.

Gulden said brand tie-up announcements were delayed due to the pandemic, resulting in several being unveiled in quick succession.

"We will work with brand partners in the future, but probably not four within 18 months," he said.

On the whole, investors back Gulden, previously CEO of neighbour and rival Puma, to turn Adidas around: its shares are up 23% since his appointment on Nov. 8.

"The CEO has come from a story of fantastic growth [at Puma]," said Ortelli. "Let's see if he can make the same magic at Adidas."

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Bernstein: Adidas will "struggle to fix its mess this year"

Investing.com -- Adidas AG (ETR:ADSGN) (OTC:ADDYY) faces major short-term concerns in 2023, including issues related to its dispute with rapper Ye and the return of Chinese demand after the lifting of long-standing COVID-19 restrictions, according to analysts at Bernstein.

In a note to clients, the analysts said the German sportswear group is in a year of "transition," adding that new chief executive officer Bjørn Gulden's annual targets have "wip[ed] out any hope of growth, profits or buybacks."

"We expect Adidas to struggle to fix its mess this year, with progress perhaps moving slower than bulls are looking for," the analysts noted.

They argued that mishaps around product launches have hurt the brand, saying these problems must be resolved to make the business more "nimble and reactive."

Earlier this week, Adidas reiterated a warning issued in February that if it decides not to repurpose any of its Yeezy branded products going forward, the remaining unsold inventory will be written off, lowering operating profit by €500 million (€1 = $1.0568) and revenue by around €1.2 billion in its current financial year.

Meanwhile, the firm said it expects to be hit by one-off costs of up to €200M as part of a wider review of its operations.

Adidas subsequently predicted it could now report an annual operating loss of €700M, while currency-neutral sales are seen declining at a high-single-digit rate this year. On an underlying basis, operating profit is forecast to be "around the break-even level."

The Bernstein analysts also flagged Adidas' performance in China, warning that excess inventory will likely lead to the firm missing an expected post-COVID rebound in retail demand in the country.

Beyond the next 18 months, the Bernstein analysts said they liked Adidas' turnaround strategy, although this recovery "won't be easy."

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LONDON (Reuters) -Adidas said on Friday its first-quarter numbers came in better than expected, although sales dipped 1% from a year-ago period, as investors hope for the German sportswear giant to turn its fortunes around.

Adidas (OTC:ADDYY), which last year ended a lucrative partnership with Ye, the rapper formerly known as Kanye West, gave no update on what it plans to do with its stock of unsold Yeezy shoes.

The Yeezy crisis hit sales in the reported quarter by around 400 million euros ($441.56 million), Adidas said, mainly affecting revenue across the North America, Greater China and EMEA regions.

"The decline in Lifestyle and the loss of Yeezy are of course hurting us," said CEO Bjorn Gulden.

Still, Gulden was optimistic about the rest of the year. The Terrace shoe style is doing well in all markets, he added, and Adidas has started to make more Samba, Gazelle, and Campus shoes.

Sales came in at 5.274 billion euros, down from 5.302 billion euros seen in the first quarter of 2022. Analysts expected sales to fall by 4%, according to consensus estimates compiled by the company.

North America was the worst hit by the Yeezy debacle, with currency-neutral sales down 20% from last year. Sales in Greater China fell by 9%, while EMEA sales increased 4%.

Adidas reported an operating profit of 60 million euros, beating analysts' expectations of 15 million euros. Its gross margin fell to 44.8% due to the loss of Yeezy sales, higher supply chain costs and discounts.

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LONDON (Reuters) -Adidas reported better-than-expected quarterly results and said the Chinese market was improving, sending its shares up 8%, although its chief executive warned the group still faces a "bumpy year with disappointing numbers".

The German sportswear giant is forecasting a loss this year after ending its Yeezy partnership with rapper Kanye West, who changed his name to Ye in 2021.

Losing the highly profitable Yeezy line hit sales in the quarter by around 400 million euros ($440 million), Adidas (OTC:ADDYY) said, mainly denting revenue across North America, Greater China and EMEA. But after six months of relentlessly gloomy news, investors were cheered by some early signs of recovery.

"Adidas is managing investors' expectations," said Mamta Valechha, equity research analyst at Quilter Cheviot, which holds shares in Adidas.

"They are going in the right direction - China is recovering, inventories are still too high but at least sequentially down," she added. Clearing out the inventory will be key for Adidas this year.

Adidas gave no update on what it plans to do with its stock of unsold Yeezy shoes, but CEO Bjorn Gulden told reporters Adidas has narrowed down the options for the shoes, and it is getting closer to a decision.

Quarterly operating profit of 60 million euros beat analyst expectations of 15 million euros. And although sales fell by 1%, this was also better than a forecast 4% drop, prompting an 8% rise in Adidas shares to their highest level since August.

Adidas stuck to its 2023 guidance, having warned of a 700 million euro operating loss if it decides to completely write off the Yeezy stock.

North America was the worst hit by the loss of Yeezy, with currency-neutral sales down 20% from last year.

BRIGHTER SIGNS IN CHINA

Sales in Greater China, a difficult region for Adidas, fell by 9% but Gulden said there were signs of improving performance in that market.

The sell-through rate - or the share of product held in inventory that went on to be sold - jumped by 12% in the first quarter in Adidas' own stores and wholesalers in China, meaning retailers are likely to order more in future.

"For the first time... (in) the last two and a half years, we are actually optimistic that the numbers will turn from red to green," said Gulden, who joined Adidas from sportswear rival Puma at the start of the year.

Latin America was a bright spot, with sales up 49%. The "terrace" shoe style is doing well in all markets, and Adidas has started to make more Samba, Gazelle, and Campus shoes, Gulden said.

Overall, sales were 5.274 billion euros, down from 5.302 billion euros in the first quarter of 2022.

Adidas' gross margin fell to 44.8% due to the loss of Yeezy sales, higher supply chain costs and discounts.

Inventories rose by 25% to 5.675 billion euros and Gulden said Adidas is working hard to "normalise" levels, which would allow it to discount less and boost the brand.

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Gigant podpisał umowę sponsorską. Wielkie pieniądze na stole!

Dobre wiadomości dla Manchesteru United. Angielski klub otrzyma wielki zastrzyk pieniędzy. Dzięki umowie sponsorskiej zarobi bowiem co najmniej miliard euro. Będzie ona obowiązywać do 2035 roku. To zdecydowanie więcej niż miał z poprzedniej. "Czerwone Diabły" w zeszłym sezonie zajęły trzecie miejsce i znowu zagrają w Lidze Mistrzów.

Manchester United pochwalił się przedłużeniem kontraktu z dostawca strojów. Nowa, 10-letnia, umowa z Adidasem, gwarantuje klubowi co najmniej miliard euro. Będzie ona obowiązywać do 2035 roku. Na poprzedniej "Czerwone Diabły" zarobiły "tylko" około 875 milionów euro.

"Relacje między Manchesterem United a Adidasem są jednymi z najbardziej kultowych w światowym sporcie" - powiedział Richard Arnold, który jest dyrektorem wykonawczym w klubie z Old Trafford.

"Nasze partnerstwo, którego korzenie sięgają lat 80. XX wieku, w ciągu ostatniej dekady zostało odkryte na nowo dzięki najbardziej innowacyjnym projektom i technologiom w odzieży sportowej" - dodał.

Ostatnia umowa pomiędzy stronami obowiązuje od sezonu 2015/16. Wcześniej niemiecki gigant odzieżowy ubierał United w latach 1980-92.

Premier League. Manchester United z nową umową sponsorską
Według najnowszego rocznego sprawozdania United, pierwotna umowa z Adidasem wiąże część rocznych płatności z udziałem klubu w Lidze Mistrzów. Trzykrotni zwycięzcy powrócą w tym sezonie do najważniejszych europejskich rozgrywek klubowych po tym, jak nie zakwalifikowali się do nich w sezonie 2022-23. Zgodnie z nową umową, brak gry w Lidze Mistrzów przez dwa kolejne sezony obniżyłby roczne płatności o 30 procent.

"Adidas i Manchester United to dwie najważniejsze marki w międzynarodowym futbolu i kontynuacja współpracy jest dla nas bardzo naturalna" - stwierdził Bjørn Gulden, dyrektor wykonawczy niemieckiej marki.

W nocy z niedzieli na poniedziałek polskiego czasu "Czerwone Diabły" przegrały w sparingu rozegranym w Las Vegas z Borussią Dortmund 2-3.

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Adidas AG (ETR:ADSGN) stock fell 0.7% after the German sportswear manufacturer's sales fell 5% in the second quarter but a release of Yeezy shoes helped its profit margin increase, narrowing a projected loss.

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Akcje Adidasa mocno wzrosły po tym, jak gigant artykułów sportowych wskazał na całoroczny skorygowany zysk operacyjny w wysokości 100 mln euro, w porównaniu z wcześniejszymi prognozami progu rentowności.

(Reuters) -Sportswear giant Adidas (OTC:ADDYY) lifted its revenue forecast and cut its expected loss for 2023 on Tuesday, citing Yeezy shoe sales and a stronger core business.

The German company said it now expects an operating loss for 2023 of around 100 million euros ($106 million), from a previously expected 450 million euros.

"While the company's performance in the quarter was again positively impacted by the sale of parts of its remaining Yeezy inventory, the underlying Adidas business also developed better than expected," the company said.

Shares in Adidas have gained 34% since the start of the year as investors gain confidence in CEO Bjorn Gulden's ability to turn the company around after a break-up with rapper Ye triggered by antisemitic comments he made in interviews.

Excluding the cost of ending the lucrative Yeezy shoe range produced in partnership with Ye, Adidas said it now sees an underlying operating profit of 100 million euros, up from break-even previously.

Adidas has been selling its remaining stock of Yeezy shoes since the end of May, helping narrow an expected loss, which was initially forecast as 700 million euros in March.

The most recent Yeezy drops generated a profit of 150 million euros, a spokesperson said. Adidas will be making further donations to charity from the proceeds, he said, without giving a specific amount.

Adidas said third-quarter revenues grew by 1% in currency-neutral terms compared to the same period a year ago, while gross margin improved by 0.2 percentage points to 49.3%.

In a sign of the impact of a stronger euro compared to a year ago, third-quarter revenues in euro terms declined by 6%.

Adidas will report its full third-quarter results on Nov. 8.