LONDON (Reuters) -Adidas’ first-quarter numbers came in better than expected, the company said on Friday, with sales down 1% from a year-ago period, as investors hope for the German sportswear giant to turn its fortunes around.
Analysts expected sales to fall by 4% from the first quarter of 2022, according to consensus estimates compiled by Adidas.
Adidas reported a small operating profit of 60 million euros ($66.26 million) and a lower gross margin of 44.8% due to higher supply chain costs and increased discounting.
Adidas, which last year ended a lucrative partnership with Ye, the rapper formerly known as Kanye West, gave no update on what it plans to do with its stock of unsold Yeezy shoes.
The ending of the Yeezy business hit sales in the quarter by around 400 million euros, Adidas said, mainly across the North America, Greater China and EMEA regions.
“The decline in Lifestyle and the loss of Yeezy are of course hurting us,” said CEO Bjorn Gulden.
Gulden said he is optimistic for the rest of the year. The Terrace shoe style is doing well in all markets, he added, and Adidas has started to make more Samba, Gazelle, and Campus shoes.
($1 = 0.9055 euros)
(Reporting by Helen Reid; Editing by Himani Sarkar and Sherry Jacob-Phillips)
