adidas AG (PNK:ADDYY) Q1 2023 Earnings Call Transcript

Bjorn Gulden: Revenue development, we’re still seeing high single-digit decline. And the reason for that is, of course, that we do not know if we will have enough good inventory in the second half to actually do higher sales. And remember, I said we will not chase any business because we think that will be the wrong strategy. So the priority is not to have growth on the top line, but it’s to get out of the year with a cleaner inventory. And if we now are chasing sales, we could end up in the ironic situation that we could have a better top line, we will not get rid of the inventory that we’re sitting. So that’s why we kind of have a hybrid, what should I say, strategy for the second half. Of course, try to sell as much as we can on what we have, but maybe not chase everything we could by buying into it but have a better start to ’24.

That’s why we keep currently the — what should I say, the sales guidance the way we do. And then don’t also forget that should we be able to start to sell off the Yeezy product in one way, shape or form that has a lot of work for us because that’s a complicated thing right now. So that’s why we have consciously not tried to impress you guys with any numbers in ’23, but are trying to do everything right for midterm and are putting focus on that. That’s why the guidance is the way it is. And that’s also how we are trying to act every day.

Sebastian Steffen: Thanks very much, Warwick, thanks very much, Francie, and thanks very much also to Bjorn and Harm. And of course, also thanks very much to all of you. Ladies and gentlemen, this concludes our Q1 call for today. If you have any further questions, please feel free to reach out to any member of the IR team. And of course, also myself. And with that, thanks very much again. Have a good remainder of the day and a great weekend ahead. All the best. Bye-bye.

Harm Ohlmeyer: Thank you all.

Operator: Ladies and gentlemen, the conference has now concluded, and you may disconnect your telephone. Thank you very much for joining, and have a great weekend. Goodbye.