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Adidas Says Q2 Underlying North America Sales Rise 

An Adidas sneaker is seen on display at the newly renovated JD Sports store at Westfield Stratford City in London, Britain, July 30, 2024. (Reuters)
An Adidas sneaker is seen on display at the newly renovated JD Sports store at Westfield Stratford City in London, Britain, July 30, 2024. (Reuters)
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Adidas Says Q2 Underlying North America Sales Rise 

An Adidas sneaker is seen on display at the newly renovated JD Sports store at Westfield Stratford City in London, Britain, July 30, 2024. (Reuters)
An Adidas sneaker is seen on display at the newly renovated JD Sports store at Westfield Stratford City in London, Britain, July 30, 2024. (Reuters)

Adidas said on Wednesday its second-quarter revenues in North America, excluding sales of the Yeezy line, increased from last year, driven by growth in both wholesale and its own retail.

Including Yeezy, the currency-neutral sales in North America - Adidas' second-biggest market behind Europe - fell by 8% to 1.3 billion euros ($1.51 billion) in the April to June period.

"The decline was solely related to the significantly smaller Yeezy business," the company said in a statement, without specifying how much the sales increased excluding the product line.

In a turnaround led by CEO Bjorn Gulden, Adidas has sought to clear remaining Yeezy stock after a bruising break-up with rapper Kanye West, who goes by Ye, while striving to boost its brand through its popular retro styles.

Its quarterly currency-neutral sales rose 19% in Europe to 1.9 billion euros, from 1.6 billion euros a year earlier.

Adidas had hiked its full-year guidance for the second time this year and reported preliminary second-quarter results above expectations in mid-July.

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Fashion

Kering Posts 11% Drop in Q2 Sales, Sees Weak Second Half

The logo of luxury brand Gucci is seen in Tokyo on June 22, 2021. (AFP)
The logo of luxury brand Gucci is seen in Tokyo on June 22, 2021. (AFP)
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Kering Posts 11% Drop in Q2 Sales, Sees Weak Second Half

The logo of luxury brand Gucci is seen in Tokyo on June 22, 2021. (AFP)
The logo of luxury brand Gucci is seen in Tokyo on June 22, 2021. (AFP)

Kering reported a bigger-than-expected drop in second-quarter sales and forecast a weak second half, as the French luxury group struggles to revive its key label Gucci and worries grow about a prolonged downturn in high-end spending.

Sales at the French luxury group which owns labels Gucci, Boucheron and Balenciaga, fell to 4.5 billion euros ($4.9 billion), an 11% drop on an organic basis, which strips out currency effects and acquisitions.

The figure was below analyst expectations for a 9% drop, according to a Visible Alpha consensus.

It also said second-half operating income could fall by around 30%, following a 42% drop in the first half.

Sales at Gucci fell 19%, showing no improvement from the first quarter, and below analyst expectations for a 16% decline, according to a Visible Alpha consensus.

Kering has been revamping Gucci, the century-old Italian fashion house which accounts for half of group sales and two-thirds of profit.

Minimalist designs from new creative director Sabato de Sarno, which began trickling into stores earlier this year, are key to the design reset and push upmarket, in a bid to cater to wealthier clients who are more immune to economic headwinds.

Kering chief financial officer Armelle Poulou told reporters that the designs had been well received and the rollout was on track.

But the efforts have been complicated by a downturn in the global luxury market, while China's rebound - traditionally Gucci's most coveted market - was clouded by a property crisis and high youth unemployment as Western markets came down from a post-pandemic splurge.

Earnings from sector bellwether LVMH on Tuesday missed expectations as sales rose 1%, offering few signs that a pickup is around the corner, sending shares in luxury goods companies down on Wednesday. Kering traded at its lowest level since 2017.