BERLIN Unexpectedly good sales of Yeezy inventory left over from its abandoned collaboration with rapper Kanye West helped Adidas to revise up its full-year forecast to an operating loss of 450 million euros ($498.56 million) compared to a 700 million euro loss previously.
Although revenues fell 5% to 5.3 billion euros in the second quarter, the gross margin rose 0.6 percentage points to 50.9%, the company said on Monday.
Operating profit for the second quarter was 176 million euros, down from 392 million the year before.
"Including the positive impact from the first Yeezy drop, the potential write-off of the remaining Yeezy inventory of now 400 million euros (previously 500 million euros) and one-off costs related to the strategic review of up to 200 million euros (unchanged), the company now expects to report an operating loss of 450 million euros in 2023," Adidas said in a statement.
($1 = 0.9026 euros)
(Reporting by Thomas Escritt; Editing by Jan Harvey)
