Adidas warns of sales decline in overstocked North America market

Adidas sales forecast 2024: German sportswear giant Adidas cautioned on Wednesday of an anticipated decline in its sales in North America for the year 2024, attributing it to an ongoing issue of overstock in the region's market. This announcement came as the company unveiled its final full-year results.

Adidas stated that currency-neutral sales in North America are projected to decrease at a mid-single-digit rate in 2024, with growth expected in all other regions. The company's disclosure follows its preliminary results for the year announced in late January, which revealed a significantly lower 2024 forecast compared to analysts' expectations. This decline in forecasted profits stems from the sell-off of its discontinued sneaker line in collaboration with Kanye West.

CEO Bjorn Gulden commented, "Although by far not good enough, 2023 ended better than what I had expected at the beginning of the year."

Despite facing challenges in 2023, including posting a net loss from continuing operations of 58 million euros, Adidas's board intends to propose an unchanged dividend of 0.70 euros ($0.7650) per share, consistent with the previous year.

(With Reuters inputs.)