Adidas AG

OTCQX International:ADDYYUnited States

Oct 29, 2024

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• DJ Adidas Reaches Out-Of-Court Settlement With Kanye West -- Update, from 9:47AM ET on Tuesday Oct 29, 2024 by Dow Jones

  9:47AM ET on Tuesday Oct 29, 2024 by Dow Jones
  Companies Mentioned: ADDYY
  By Andrea Figueras and Ulrike Dauer Adidas reached an out-of-court settlement with Kanye West, ending any legal claims connected to the German sportswear company's previous collaboration with the rapper, two years after they parted ways. The move allows the company to draw a line under a collaboration with the rapper that once helped drive revenue but ended with damage that is still being repaired. The termination left Adidas with millions of dollars in inventory of unsold Yeezy products, which it has been selling in batches. In a conference call on company results, Chief Executive Bjorn Gulden said the group reached a settlement with the rapper, known as Ye, and his lawyers during the third quarter. The agreement, which involved no payments, means that neither side has any outstanding claims against the other. Adidas has been entangled in a dispute with the rapper after deciding to end their collaboration due to the artiste's behavior and antisemitic comments. The parties parted ways in 2022 after teaming up in 2013, a split that has weighed on the company's financials. Gulden disclosed the settlement as Adidas reported Tuesday a 71% jump in third-quarter net profit to 443 million euros ($479 million). The figure surpassed analysts' prospects of 388.4 million euros, according to a poll of estimates compiled by Visible Alpha. The scrapped collaboration was behind the company's 8.3% decline in sales in North America in the quarter. Excluding Yeezy, revenue grew in the region from the year-earlier period. In the region that includes China, Taiwan and Hong Kong, revenue jumped 8.7%. Overall, Adidas's sales were up 7.3% at 6.44 billion euros and operating profit jumped 46% to 598 million euros, in line with preliminary figures the company released earlier this month. Revenues rose 10% when excluding currency movements. The company maintained its recently lifted guidance. The group expects operating profit for this year to be at around 1.2 billion euros and projects revenue to grow by around 10% at constant currency. The outlook assumes that the remainder of Yeezy inventory would be sold on average at cost, resulting in about 50 million euros in extra sales and no contribution to profit. The company said its results got a boost from growing footwear sales, thanks to the popularity of its Samba, Spezial, Campus and Gazelle sneakers. Footwear sales jumped 14% on a currency-neutral basis, amid increasing competition from performance brands such as On and Hoka and recent comments from rivals about a muted consumer environment. Adidas has been trying to revive the brand's momentum since chief executive Gulden took the reins at the company in 2023. The momentum for Adidas comes as its main rival Nike is contending with challenges. The U.S. athletic gear giant recently withdrew its guidance for the year ending in May and reported a decline in sales, after replacing its chief executive in September. Analysts at RBC Capital Markets said in a note ahead of results that Adidas could maintain its sales momentum into the next year, since a lack of strategy and near-term product initiatives at Nike means its U.S. rival offers less competition. Write to Andrea Figueras at andrea.figueras@wsj.com and to Ulrike Dauer at ulrike.dauer@wsj.com (END) Dow Jones Newswires October 29, 2024 09:47 ET (13:47 GMT)

• DJ Adidas Reaches Out-Of-Court Settlement With Kanye West, from 8:43AM ET on Tuesday Oct 29, 2024 by Dow Jones

  8:43AM ET on Tuesday Oct 29, 2024 by Dow Jones
  Companies Mentioned: ADDYY
  
  By Ulrike Dauer
  
  Adidas said it reached an out-of-court settlement with Kanye West, ending any legal claims connected to the German sportswear company's previous collaboration with the rapper.
  

• DJ Adidas Sprints in Recovery Race as Profit Surges -- Update, from 4:27AM ET on Tuesday Oct 29, 2024 by Dow Jones

  4:27AM ET on Tuesday Oct 29, 2024 by Dow Jones
  Companies Mentioned: ADDYY
  
  By Andrea Figueras
  
  Adidas reported a profit surge for the third quarter as the sportswear maker's recovery gains traction at a time when rival Nike has struggled to revive brand appeal.
  

• DJ Adidas's Progress Looks Encouraging -- Market Talk, from 3:56AM ET on Tuesday Oct 29, 2024 by Dow Jones

  3:56AM ET on Tuesday Oct 29, 2024 by Dow Jones
  Companies Mentioned: ADDYY
  
  0756 GMT - Adidas's financial progress seems encouraging and the company should continue to experience positive trends, RBC Capital Markets analysts Piral Dadhania and Nikolaos Lafioniatis write in a research note. The German maker of sporting gear reported quarterly net profit of 443 million euros, roughly 71% higher than in the prior-year period. It also confirmed prereleased figures, with a 7% sales increase to 6.44 billion euros and an operating profit of 598 million euros. "Adidas is undergoing fairly significant change behind the scenes, with CEO Bjorn Gulden reviewing almost all aspects of the business," they say. The analysts expect a continuation of strong revenue trends in the final quarter of the current year, as well as in 2025. Shares closed at 213.80 euros on Monday. (andrea.figueras@wsj.com)
  

• *DJ Adidas 3Q Rev EUR6.44B, from 2:31AM ET on Tuesday Oct 29, 2024 by Dow Jones

  2:31AM ET on Tuesday Oct 29, 2024 by Dow Jones
  Companies Mentioned: ADDYY
  By Andrea Figueras Adidas reported a profit surge for the third quarter as it speeds up its rebound from recent years' hiccups and at a time when its rival Nike struggles to regain brand appeal. The German sportswear company on Tuesday reported net profit of 443 million euros ($479 million) for the third quarter, around 71% higher than in the prior-year period. The figure surpassed analysts' prospects of 388.4 million euros, according to a poll of estimates compiled by Visible Alpha. The group also confirmed prereleased quarterly figures, with sales up 7% at 6.44 billion euros and an operating profit of 598 million euros that compares with 409 million euros previously. Currency-neutral revenues increased 10% during the quarter. Footwear sales jumped 14% on a currency-neutral basis, at a time when the company is grappling with fierce competition from performance brands such as On and Hoka. Sales of its lifestyle segment increased in the double digits during the three-month period, boosted by the popularity of its Samba, Spezial, Camus and Gazelle sneakers and despite an overall dampened consumer environment. The company maintained its recently-lifted guidance. The group estimates operating profit for this year to be at around 1.2 billion euros and projects revenue to grow by around 10% at constant currency. Write to Andrea Figueras at andrea.figueras@wsj.com (END) Dow Jones Newswires October 29, 2024 03:02 ET (07:02 GMT)