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According to the observation of Huacheng's import and export data, Adidas has suffered a lot from the cotton storm in Xinjiang in 2021 to the suspension of Yeezy shoes in 2022.

After suffering from the severe injury in 2021, Adidas' 2022 is still full of ups and downs.

On February 9, local time, Adidas, the German sports shoes and clothing retail giant, released the performance guidance for 2023 and the preliminary unaudited performance briefing for 2022.

According to Huacheng Import and Export Data Observation, Adidas' revenue increased by only 1% in neutral currency throughout 2022. Although the company's sales increased by 6% from 21.334 billion euros in 2021 to 22.511 billion euros, the overall gross profit margin decreased from 50.7% in 2021 to 47.3%, the operating profit decreased significantly from 1.986 billion euros to 669 million euros, and the net profit from continuing operations decreased significantly from 1.492 billion euros to 254 million euros, with a decrease of 82%.

As of the close of February 9 EST, Adidas (ADR) dropped 8.96% to close at $75.16 per share. In 2022, the price of adidas (ADR) fell by more than 50%, and Huacheng Import and Export Data Observation reported.

The weak performance of Adidas and the performance of Greater China are still inseparable. According to the report previously disclosed by the company, as of the third quarter of 2022, the sales and operating profit of Adidas Greater China have declined for six consecutive quarters year-on-year. Among them, the sales in Greater China in the third quarter of 2022 was only 937 million euros, which was 27% lower than that in 2021 in neutral currency; Operating profit decreased by 37% year-on-year to EUR 212 million.

In 2022, Adidas lowered its performance guidance three times. "The figures show everything. Our current performance has not reached the level it should have been," said Bj ø rn Gulden, chief executive of Adidas, who took office in January this year.

He also stressed that 2023 will be the year of transformation and transition of Adidas, which will build Adidas into a growing and profitable company again. "We need some time to let Adidas shine again."

It is noteworthy that the company's performance expectations for 2023 are not optimistic. Adidas expects that the overall sales in 2023 will fall by a high single-digit level compared with 2022, and the operating profit will be at the break-even level.

In addition, last October, Adidas announced that it would terminate its cooperation with Kanye West, an American rapper and fashion designer, and the sales of the relevant Yeezy cooperation series were also being reviewed by the company, which would have a significant impact on Adidas' performance. A previous report revealed that the market value of the Yeezy product inventory owned by Adidas was about US $530 million, or about a million pairs of Yeezy shoes. From the past data, as early as 2019, the annual sales of this series of shoes had exceeded $1 billion. In 2021, the sales of Adidas Yeezy series of sports shoes reached nearly $1.7 billion.

In the financial guidance of 2023, Adidas pointed out that if it did not sell the inventory of Yeezy series products and cancel them all, the company's revenue this year would decrease by about 1.2 billion euros, and its operating profit would decrease by about 500 million euros, according to the observation report of Huacheng Import and Export Data.

In addition, the company also said that as part of Adidas' strategy of recovering profit growth in 2024, it is expected that the company's additional one-time cost will be as high as 200 million euros in 2023. This also means that if the above impacts are realized, it will bring the company a loss of operating profit of up to 700 million euros.

From the cotton storm in Xinjiang in 2021 to the suspension of the Yeezy shoe series in 2022, Adidas has been hit hard. From the current situation, its performance will be restored at least until 2024.