Broad-based price increases were more than offset by the strong increase in supply chain costs, reflecting increased product costs and freight expenses. The company’s gross margin decreased 3.4 percentage points to 47.3% in 2022 (2021: 50.7%). In Greater China, revenues declined 36% compared to the prior year level due to the challenging market environment, company-specific challenges as well as significant inventory takebacks. Revenues in EMEA were up 9% amid the significant adverse impact from the wind-down of the company’s business in Russia. Revenue growth in all market segments except Greater Chinaįrom a market perspective, currency-neutral sales grew at a double-digit rate in Latin America (+44%) and North America (+12%). In euro terms, the company’s revenues increased 6% in 2022 to € 22,511 million (2021: € 21,234 million). From a category perspective, currency-neutral revenues in Performance grew at a strong double-digit rate, while Lifestyle revenues declined. E-commerce revenues increased 4% during the year driven by double-digit growth in North America and Latin America. Within DTC, own retail revenues were flat compared to the prior year level. From a channel perspective, adidas’ top-line development was supported by growth in both wholesale (+1%) and the company’s own direct-to-consumer (DTC) business (+2%). In 2022, currency-neutral revenues grew 1%, reflecting increases in all market segments except Greater China. We will bring it back to be the best sports brand in the world once again.” Financial Performance in 2022 Currency-neutral sales grow 1% adidas is a fantastic brand, a fantastic company with great infrastructure and great talented people. A business model built to focus on serving our consumer through both wholesale and DTC, that balances global direction with local needs, that is fast and agile, and of course, always invests in sports and culture to keep building credibility and brand heat. Motivated people and a strong adidas culture are the most important factors to build a unique adidas business model again. We will work on strengthening our people and the adidas culture. But we need to put our focus back on our core: product, consumers, retail partners, and athletes. adidas has all the ingredients to be successful. We can then start to build a profitable business again in 2024. “We need to reduce inventories and lower discounts. “2023 will be a transition year to build the base for 20,” said Bjørn Gulden, CEO of adidas.

Reported operating loss to be € 700 million including additional negative impact of € 500 million from potential Yeezy inventory write-off and up to € 200 million one-off costs.

Underlying operating profit to be around break-even level reflecting sales loss of around € 1.2 billion and corresponding negative operating profit impact of around € 500 million from potentially not selling Yeezy stock.

Currency-neutral revenues to decline at a high-single-digit rate.

Net loss from continuing operations of € 482 million.

Gross margin at 39.1% reflecting increased supply chain costs and higher discounting.

Currency-neutral revenues decline 1% impacted by termination of Yeezy partnership.

Executive and Supervisory Boards propose dividend of € 0.70 per share.

Net income (continuing operations) of € 254 million includes € 350 million one-off costs.

Operating profit at € 669 million, including one-off costs of € 312 million.Gross margin declines to 47.3% due to strong increase in supply chain costs and discounting.Double-digit increases in North America and Latin America, EMEA up high single digits.

Currency-neutral revenues up 1% reflecting growth in all markets except Greater China.

December writing challenge 2021