Consumer
Adidas Slumps as Weak Profit Forecast Follows Currency Hit
- US shares fall after guidance misses investors’ expectations
- Shoemaker will sell its remaining Yeezy inventory at cost
The German sports shoe maker said it will sell remaining Yeezy inventory at cost, generating sales of €250 million, rather than writing it off.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
Adidas AG slumped after the German company said currency swings will worsen the effects of a slowdown in the sports apparel market, restricting earnings to less than half of analysts’ estimates.
Operating profit should be around €500 million ($542 million) in 2024, Adidas said late Wednesday, compared with an average analyst estimate of €1.27 billion.