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Adidas Reduces Inventory Levels More Than Planned 

Football - FIFA World Cup Qatar 2022 - Third-Place Playoff - Croatia v Morocco - Khalifa International Stadium, Doha, Qatar - December 17, 2022 General view of FIFA president Gianni Infantino's Adidas shoes during the medal ceremony. (Reuters)
Football - FIFA World Cup Qatar 2022 - Third-Place Playoff - Croatia v Morocco - Khalifa International Stadium, Doha, Qatar - December 17, 2022 General view of FIFA president Gianni Infantino's Adidas shoes during the medal ceremony. (Reuters)
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Adidas Reduces Inventory Levels More Than Planned 

Football - FIFA World Cup Qatar 2022 - Third-Place Playoff - Croatia v Morocco - Khalifa International Stadium, Doha, Qatar - December 17, 2022 General view of FIFA president Gianni Infantino's Adidas shoes during the medal ceremony. (Reuters)
Football - FIFA World Cup Qatar 2022 - Third-Place Playoff - Croatia v Morocco - Khalifa International Stadium, Doha, Qatar - December 17, 2022 General view of FIFA president Gianni Infantino's Adidas shoes during the medal ceremony. (Reuters)

Adidas said on Wednesday that inventory levels continued to decline in the third quarter as the German firm curbed its selling into wholesalers, while lower costs helped increase its gross margin.

Inventory levels were down 23% on the year to 4.85 billion euros ($5.18 billion), a little more than expected, Adidas said.

Adidas last month lifted its full-year guidance, partly thanks to the positive impact of the release of Yeezy shoes during the second and third quarter.

Adidas' gross margin for the quarter was up 0.2 percentage points, to 49.3%, thanks to reduced freight costs and less discounting.

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Fashion

LVMH Sales Grow 1% in Second Quarter, Missing Estimates

This photograph taken on January 25, 2024 shows the logo of World's top luxury group LVMH during presentation of its 2023 annual results in Paris, on January 25, 2024. (AFP)
This photograph taken on January 25, 2024 shows the logo of World's top luxury group LVMH during presentation of its 2023 annual results in Paris, on January 25, 2024. (AFP)
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LVMH Sales Grow 1% in Second Quarter, Missing Estimates

This photograph taken on January 25, 2024 shows the logo of World's top luxury group LVMH during presentation of its 2023 annual results in Paris, on January 25, 2024. (AFP)
This photograph taken on January 25, 2024 shows the logo of World's top luxury group LVMH during presentation of its 2023 annual results in Paris, on January 25, 2024. (AFP)

LVMH, the world's biggest luxury company, posted a 1% rise in organic sales in the second quarter on Tuesday, missing analyst estimates, and likely adding to investor jitters about slowing growth in the sector.

Sales at the French group, owner of labels Louis Vuitton, Tiffany & Co. and Hennessy, grew to 20.98 billion euros ($22.8 billion), a 1% rise on an organic basis, which strips out currency effects and acquisitions.

The figure fell below analyst expectations for revenues of 21.6 billion euros, according to an LSEG poll based on six analysts.

The report from luxury sector bellwether LVMH, which is Europe's second-largest listed company, worth around 340 billion euros, comes amid concerns about weak sales of designer fashions in the sector's key market, China.

The group's fashion and leather goods division, which includes the Louis Vuitton and Christian Dior brands and accounts for nearly half of group sales and the bulk of operating profit, grew 1%, slowing slightly from the previous quarter's 2% rise.

"While remaining vigilant in the current context, the group approaches the second half of the year with confidence," said LVMH Chairman and Chief Executive Officer Bernard Arnault in a statement.