Sports apparel brand Adidas has reported a 66% decline in its full-year operating profit for fiscal 2022 (FY22) to €669m ($708m), against €1.98bn ($2.09bn) in fiscal 2021 (FY21).
The company’s operating margin for the year was 3.0%, down by 6.4% from 9.4% a year earlier.
Go deeper with GlobalData
Its currency-neutral revenues rose by 1% in the year, driven by increases in all market segments except Greater China.
adidas‘ wholesale channel posted a 1% revenue growth for the full year, while its direct-to-consumer (DTC) and e-commerce revenues increased by 2% and 4% respectively.
The company’s currency-neutral sales grew in Latin America and North America by 44% and 12% respectively, while its revenues for the EMEA region rose by 9%.
See Also:
Its revenues in Greater China declined by 36% compared with the prior year.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAdidas’ gross margin for FY22 dropped by 3.4% to 47.3%, while its net income from continuing operations declined by 83% to €254m.
The brand’s basic and diluted earnings per share (EPS) decreased by 83% to €1.25.
In the fourth quarter (Q4) of FY22, Adidas’ currency-neutral revenues declined by 1%, while its gross margin fell by 9.9% to 39.1% year-on-year.
The company recorded an operating loss of €724m for Q4 2022.
For fiscal 2023 (FY23), Adidas expects currency-neutral revenues to decline at a high-single-digit rate.
Adidas CEO Bjørn Gulden said: “2023 will be a transition year to build the base for 2024 and 2025.
“We need to reduce inventories and lower discounts. We can then start to build a profitable business again in 2024.
“Adidas has all the ingredients to be successful. But we need to put our focus back on our core: product, consumers, retail partners, and athletes.
“We will work on strengthening our people and the adidas culture. Motivated people and a strong adidas culture are the most important factors to build a unique adidas business model again.”
