Sportswear giant Adidas has reported its first quarter results for 2023, announcing a one per cent decline in revenues from EUR5.3bn to EUR5.27bn.
Adidas, which discontinued its Yeezy business in an effort to distance itself from Kanye West, said the move weighed on its revenues during the quarter, representing a drag of around EUR400M, mainly across the North America, Greater China and EMEA regions. The company also looked to reduce high inventory levels in North America and Greater China.
Footwear revenues, however, grew one per cent during the quarter, a reflection of the brand’s increased momentum in performance categories football, running, outdoor and tennis. Driven by growth in football, accessories grew eight per cent.
Despite mainstream popularity for athleisure styles, in particular the demand for Adidas’ Samba, Gazelle, and Campus franchises, lifestyle revenues were down during the quarter.
The launch of product innovations such as the jerseys for the FIFA Women’s World Cup 2023 and the new iteration of the iconic Predator football boot boosted performance categories’ growth at a double-digit rate.
Wholesale revenues grew three per cent in EMEA, Asia Pacific and Latin America, despite a seven per cent decline in its direct-to-consumer revenues as e-commerce declined 23 per cent. The majority of the company’s Yeezy products were sold through its own online channel.
Physical retail looks to make a comeback with Adidas’ own retail stores increasing sales by 11 per cent in the first quarter.
