adidas AG ADR

ADDYY: PINX (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$51.00	Sddbsl	Snxvvxpw

Adidas: Yeezy Clearance Brightens Near-Term Outlook, but Long-Term View Unchanged

David Swartz

Jul 24, 2023

Narrow-moat Adidas announced preliminary second-quarter results and lifted its full-year guidance after the sale of some of its remaining Yeezy shoes at the end of May. For the quarter (full results will be announced Aug. 3), the firm expects to report EUR 5.343 billion in sales (5% decline) and a 3.3% operating margin. Our forecast, which excluded Yeezy, was for EUR 5.092 billion in sales (9% decline) and a roughly EUR 200 million operating loss. We attribute about EUR 200 million of the EUR 251 million difference in sales to Yeezy, with the rest due to a small outperformance by the rest of the business.

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