Global sportswear giant Adidas has revised its 2023 financial outlook, projecting a reduced operating loss of about € 100 million, down from the initially estimated € 450 million.

“While the company’s performance in the quarter was again positively impacted by the sale of parts of its remaining Yeezy inventory, the underlying Adidas business also developed better than expected,” the company said.

Excluding expenses related to discontinuing the Yeezy shoe range, Adidas anticipates an underlying operating profit of € 100 million, a significant improvement from previous forecasts of breaking even.

Selling the remaining Yeezy inventory since May has lessened the anticipated loss, initially projected at € 700 million in March. The most recent Yeezy drops generated a profit of € 150 million, prompting Adidas to make additional charitable donations without specifying the amount.

In the third quarter, Adidas reported a 1 per cent growth in revenues in currency-neutral terms compared to the same period last year. Additionally, the gross margin saw a slight improvement of 0.2 percentage points, reaching 49.3 per cent.

Further details about Adidas’s performance will be disclosed in its full third-quarter report on 8th November.