Adidas Shares Jump After Guidance Raise

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Adidas Shares Jump After Guidance Raise

Adidas (ADDYY) Shares Jump 4% After Guidance Raise

Adidas (ADDYY) shares jumped by 4% during Wednesday's trading session after the company announced a 2023 guidance raise.

According to Adidas, the company now expects to only experience a $106 million worth of loss during the year 2023. Earlier, the company was forecasting a $450 million loss (700 mn euros) for the year 2023. In short, the Adidas company now expects to end the year with less loss than it initially thought.

In total, Adidas has changed its forecasts for the 2nd time this year, but the highlight is that it raised forecasts both times. If we look at the data, it appears that the revenue earned from the Yeezy shoe sales allowed the company to offset some of the loss.

Adidas Shares Up By 40%

Overall, the investors are now more confident about Adidas's CEO's ability to steer the company out of loss and into profits. It is this optimism that Adidas shares are already up by 40% for 2023, although the company is still at a loss.

According to one expert, the company can still surprise investors with its results. They added that the guidance of Adidas is still very cautious for markets like China, the USA, and Europe.

So if we get better than expected results from these regions, it shouldn't be a surprise at all. They commented on how the 'hot product cycle' will enable the company to achieve this!

Another thing going well for Adidas is its sneakers made from rubber soles. These shoes originally gained popularity during the 70s but are in trend once again.

Furthermore, the decline of the currency-neutral revenues at Adidas is also expected to slow down during the rest of 2023. At the same time, the company believes it can earn a profit of 100 million euros by selling the famous Yeezy shoes.

With just the last quarter of the year 2023 left, it appears the company will be in a race against time to deliver better than expected results for this financial year.

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