By Maitane Sardon

Adidas AG said Monday that sales fell in the second quarter and that it expects a smaller operating loss this year.

The German sportswear giant said it expects a 5% decline in revenue to 5.34 billion euros ($5.94 billion) for the quarter and flat currency-neutral revenue compared with the previous year, according to preliminary figures.

Operating profit was EUR176 million in the second quarter, down from EUR392 million a year ago, with the operating margin at 3.3%, Adidas said, noting both its top and bottom line benefited from the sale of some of its Yeezy stock.

Adidas said it expects currency-neutral revenues to decline at a mid-single-digit rate in 2023 and its underlying operating profit to be around the break-even level.

It said it expects to book an operating loss of EUR450 million in 2023, compared with a previous estimate of EUR700 million from the potential write-off of the remaining Yeezy inventory and one-off costs.

Write to Maitane Sardon at maitane.sardon@wsj.com

(END) Dow Jones Newswires

July 24, 2023 13:12 ET (17:12 GMT)

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