ADDYY Adidas AG (QX)

   By Joshua Kirby 
 

Adidas's recovery in China and easing of inventories helped its performance in the second quarter, the company said Thursday.

Greater China revenue rose 16% in the second quarter, marking a return to growth in the vital market after successive quarters of decline.

The German sporting-goods firm last month set out preliminary results for the second quarter showing a slight drop in sales to 5.34 billion euros ($5.84 billion) and an operating margin that improved from the previous quarter to 3.3%.

That result was boosted by the first sale of some Yeezy sneakers beginning in May, after Adidas last year broke with Yeezy designer Kanye West, or Ye, following a serious of controversies.

Inventories, which dogged Adidas's performance last year, rose only slightly in the second quarter, the company said. They stood at EUR5.54 billion, 6% higher on year adjusted for currency effects, Adidas said.

Adidas confirmed that it now expects to book a narrower operating loss for the year at EUR450 million than the EUR700 million loss initially forecast.

In the second quarter, the company's net income from continuing operations stood at EUR96 million, less than last year but marking a return to profit from a net loss the previous quarter.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

August 03, 2023 02:16 ET (06:16 GMT)

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