- Adidas reported a 4th quarter operating loss of EU377 million, which is a 48% decrease from the previous year.
- The estimated loss was slightly less, at EU372.4 million.
- Gross profit for the quarter was EU2.15 billion, a 5.5% increase year over year.
- The gross margin improved to 44.6% from 39.1% in the previous year, but slightly missed the estimate of 45%.
- Revenue for the quarter was EU4.81 billion, a 7.6% decrease from the previous year, in line with estimates.
- North America revenue was EU1.16 billion, down 25% year over year, and below the estimate of EU1.33 billion.
- Greater China sales increased by 29% to EU670 million, which was significantly higher than the estimated EU580.6 million.
- Net loss for the quarter was EU379 million, a 26% decrease from the previous year.
- The company reported a pre-tax loss of EU415 million, a 43% decrease from the previous year.
- Other operating expenses were EU2.55 billion, a 9.7% decrease from the previous year.
- Inventories decreased by 24% to EU4.53 billion, lower than the estimated EU5.08 billion.
- For the year 2023, the company paid a dividend per share of EU0.7, higher than the estimated EU0.52.
- Adidas still expects an operating profit of about EU500 million for the year 2024.
- The company expects sales to grow at a mid-single digit rate in 2024.
- Adidas plans to sell the remaining Yeezy inventory at cost, which would result in sales of around EU250 million in 2024.
- Finally, the company plans to return to its dividend policy of paying an annual dividend to shareholders in the range of 30% to 50% of net income from continuing operations.
A look at adidas Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.8 |
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
Adidas, the well-known sports brand, has recently received high scores in the Smartkarma Smart Scores. These scores, which range from 1 to 5, indicate the overall outlook for the company. With a score of 5 for momentum, it seems that adidas is on a positive track for the future.
Based on the Smart Scores, adidas also scored a 3 for growth, indicating potential for expansion and development in the coming years. However, the company received lower scores in other areas, such as value and dividend, with scores of 2 each. This suggests that investors may not see immediate returns on their investment, but the company’s growth potential may make it a worthwhile long-term investment.
Overall, adidas is a leading manufacturer of sports shoes and equipment, with a global presence. While the Smart Scores may not be the only factor to consider, they provide insight into the company’s potential for long-term success. With strong momentum and growth scores, adidas may be a promising option for investors looking for a company with a positive outlook.
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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