- Adidas has increased its operating profit forecast for the Financial year, now expecting around EU700 million, up from the previous expectation of EU500 million.
- Estimates for the operating profit stand at EU813.5 million with preliminary first-quarter results showing a gross margin of 51.2%, higher than the estimated 47.1%.
- Preliminary operating profit for the first quarter is EU336 million, greatly surpassing the estimate of EU115.1 million.
- The latest release of Yeezy shoes generated revenues of approximately €150 million and an operating profit of about €50 million in Q1.
- Adidas anticipates that all remaining Yeezy inventory will be sold at cost, resulting in additional sales of around €200 million but no subsequent profit for the rest of the year.
- The company predicts unfavorable currency effects will continue to significantly impact its profitability this year, including negative repercussions on reported revenues and gross margin development in 2024.
- Adidas now foresees its revenue to increase at a mid- to high-single-digit rate in 2024, an upgrade from the previous forecast of a mid-single-digit rate increase.
- The company currently has 15 ‘buys’, 14 ‘holds’, and 6 ‘sells’ ratings from analysts.
A look at adidas Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have given adidas an overall positive outlook based on their Smart Scores. With a Momentum score of 4, adidas is showing strong potential for future growth and performance in the market. This indicates a positive trend in the company’s stock price that investors may find attractive.
Furthermore, adidas received a Growth score of 3, suggesting promising opportunities for expansion and development. Combined with other average scores in areas such as Value, Dividend, and Resilience, adidas shows steady fundamentals that may position it well in the long term.
### Summary: adidas AG manufactures sports shoes and sports equipment. The Company produces products that include footwear, sports apparel, and golf clubs and balls. adidas sells its products worldwide. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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