However, in euro terms, revenues fell by 5% year-on-year to €21.43 billion, with the negative translation impact of more than €1 billion from unfavourable currency movements. This is expected to continue impacting Adidas in 2024.

The impact of Yeezy continues as the company sold the remaining parts of the product in the second and third quarter. Minus Yeezy revenues in 2022 and 2023, currency-neutral revenues were up by 2% in 2023.

Despite these impacts, currency-neutral footwear revenues were up by 4% in 2023 with particularly strong growth in football, specialist and U.S. sports. Apparel revenues were down 6% year-on-year, while accessories saw an increase of 3%.

Currency-neutral sales saw a dip of 4% for wholesale in 2023, despite double-digit growth in Latin America and Greater China. However, direct-to-consumer (DTC) revenues were up 3%. E-commerce revenues fell by 5% in 2023, primarily due to the Yeezy impact.

Regionally, North America had a decline of 16% in the fiscal year, while Greater China was up by 8% and EMEA was flat. Revenues in Asia-Pacific were up by 7% and Latin America grew by 22%.

Operating profit for 2023 was €268 million in 2023, with a margin of 1.3%. Adidas reported a net loss from continuing operations of €58 million for the year, reportedly reflecting an extraordinarily high tax rate.

In the fourth quarter alone, currency-neutral revenues declined by 2%, with a drop of 8% in euro terms to €4.81 billion. Footwear sales were up 8%, apparel revenues declined 13% and accessories saw a drop of 1%.

North American currency-neutral sales fell by 21% in the quarter, while EMEA dropped by 7%, Asia-Pacific was flat, Latin America grew by 1% and Greater China had strong growth at 37%. Adidas ended the fourth quarter of the year with a net loss from continuing operations of €401 million.

Looking forward, the company expects currency-neutral sales to grow in the mid-single-digits in 2024, with a projected operating profit of around €500 million.

CEO Bjørn Gulden said: “Although by far not good enough, 2023 ended better than what I had expected at the beginning of the year. Despite losing a lot of Yeezy revenue and a very conservative sell-in strategy, we managed to have flat revenues. We expected to have a substantial negative operating result but achieved an operating profit of €268 million. With a very disciplined go-to-market and buying process, we reduced our inventories by almost €1.5 billion. With the exception of the U.S., we now have healthy inventories everywhere.”