Glasses on the run Newsletter #45
Hi,
I hope you are all well and will enjoy this short selection of stories from the world of running.
What was interesting in the business of running
After releasing preliminary results earlier, Adidas posted its full 2023 fiscal year results. As per the preliminary results, its sales did indeed fell 5% year-on-year from 2022 to €21.43 billion, while it managed to record an operating profit of €268 million. Adidas did however post a net loss of €58 million - its first annual loss since 1992. CEO Bjørn Gulden says the results are still better than expected and regarding running specifically quotes the €500 Adizero Adios Pro Evo 1 shoe as one setting "completely new standards in terms of performance". He expects the early victories by Adidas athletes wearing the shoe to have a halo effect across the whole Adidas running product range. (Reuters and Adidas report)
More on Adidas and the long running Yeezy saga. Adidas is asking people to pay upfront the full amount of a pair of Yeezy shoes in order to enter a raffle, in which they are not actually guaranteed to be able to buy a pair of Yeezys. If they don't get to buy the shoes, Adidas refunds the customer the full amount within 14 days. Here is a good explainer of why Adidas is doing that and what sneakerheads are saying about it. (Morningstar)
Another public company - On also announced its 2023 annual results and it did have a really strong year. Sales grew 46.6% year on year to CHF 1.79 billion, as part of that direct-to-consumer (DTC) grew 50.9%, while wholesale grew 44.2%. In terms of product type, shoes made up 95.5% of sales - a level at which they have been for the last four years - charts below. On expects its impressive growth trajectory to continue, albeit not at 2023 levels, forecasting sales of CHF 2.25 billion in 2024. (On announcement and annual report)
Finally, Brooks's long-time CEO Jim Weber is about to depart after 23 years on the job. He will be replaced by Dan Sheridan - Brooks's President and Chief Operating Officer. The change will take place in April. (SGB Online)
As always thank you for reading and for sharing your feedback,
Momchil
