Adidas shares slip on outlook
Adidas shares fall more than 6.6% after the sportswear maker delivered a forecast for 2024 well below analyst expectations. IGTV's Angeline Ong looks at the share reaction and why Adidas’ guidance is still linked to Yeezy.
(AI Video Summary)
Low profits and dissapointing earnings outlook
Adidas, a sportswear maker, reported lower than expected profits and provided a disappointing outlook for its future earnings. As a result, the company's shares dropped significantly, causing concerns among investors. Adidas aims to sell its remaining inventory of Yeezy shoes at cost to offset the impact.
Reasons for this weak forecast
However, the market's response reflects doubt in Adidas' ability to sustain growth. The reasons for this weak forecast could be due to increased competition, changing consumer preferences, or challenges in the global economy. To recover from this setback, Adidas will need to adjust its strategies, focus on innovation, and expand into new markets. These actions will determine its ability to regain investor confidence and sustain growth in the long term.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
