- Adidas AG (OTC:ADDYY) reported a fourth-quarter FY21 sales decline of 0.1% year-on-year, to €5.1 billion. Currency-neutral revenues in Q4 declined 3%.
- Supply shortages due to the lockdowns in Vietnam, challenging market environment in Greater China, and COVID-19 related lockdowns in Asia-Pacific reduced revenue growth by more than €400 million in Q4.
- Currency-neutral revenues in North America declined 4% Y/Y, EMEA grew 15%, and Latin America improved 9%.
- The gross margin for the quarter was 49% versus 49.1% last year, and the gross profit fell 0.3% to €2.5 billion.
- The operating margin was 1.3%, and operating income for the quarter fell 71% to €66 million.
- The company held €3.8 billion in cash and equivalents as of December 31, 2021.
- EPS of €0.58 versus €0.70 last year.
- Also Read: Adidas Latest Company To Cut Ties With Russia: How Soccer Is Changing Up The Game During Ukraine Conflict
- Outlook: Adidas sees FY22 currency-neutral sales growth of 11% - 13%.
- The company expects an FY22 operating margin of 10.5% - 11% (9.4% in FY21) and gross margin of 51.5% - 52% (50.7% in FY21).
- Price Action: ADDYY shares are trading higher by 16.4% at $117.43 on the last check Wednesday.
