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Adidas Reports Fourth-Quarter Sales and Profitability Gains

An Adidas shoe is seen in a store at the Woodbury Common Premium Outlets in Central Valley, New York, US, February 15, 2022. (Reuters)
An Adidas shoe is seen in a store at the Woodbury Common Premium Outlets in Central Valley, New York, US, February 15, 2022. (Reuters)
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Adidas Reports Fourth-Quarter Sales and Profitability Gains

An Adidas shoe is seen in a store at the Woodbury Common Premium Outlets in Central Valley, New York, US, February 15, 2022. (Reuters)
An Adidas shoe is seen in a store at the Woodbury Common Premium Outlets in Central Valley, New York, US, February 15, 2022. (Reuters)

Adidas reported what it said were better than expected preliminary fourth-quarter results on Tuesday, with strong sales and profitability for the important holiday shopping period.

The German sports equipment and apparel company said revenue was up 19% year on year in currency neutral terms while its gross margin increased by 5.2 percentage points to 49.8%.

Adidas reported sales of 5.956 billion euros ($6.2 billion) for the quarter, up from 4.812 billion a year ago.

For the full year, Adidas said revenue was up 12% in currency-neutral terms, hitting 23.683 billion euros ($24.7 billion). Profitability improved with the gross margin rising by 3.3 percentage points to 50.8%.

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Fashion

ASOS Warns of $200 Million Hit from Atlanta Distribution Center Closure

A keyboard and a shopping cart are seen in front of a displayed ASOS logo in this illustration picture taken October 13, 2020. (Reuters)
A keyboard and a shopping cart are seen in front of a displayed ASOS logo in this illustration picture taken October 13, 2020. (Reuters)
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ASOS Warns of $200 Million Hit from Atlanta Distribution Center Closure

A keyboard and a shopping cart are seen in front of a displayed ASOS logo in this illustration picture taken October 13, 2020. (Reuters)
A keyboard and a shopping cart are seen in front of a displayed ASOS logo in this illustration picture taken October 13, 2020. (Reuters)

Britain's ASOS Plc flagged a one-time impairment charge exceeding $200 million in fiscal 2025 due to the "mothballing" of its Atlanta distribution center on Wednesday, as the online fashion retailer navigates a tough business environment.

Over the last couple of years, ASOS has been working to transform its business after losing popularity among its target audience of young customers and dealing with an inventory surplus.

This effort by the retailer, however, has coincided with the growing prominence of budget-friendly fast-fashion brands such as Shein and the Chinese online retailer Temu.

The decision to phase out the Atlanta facility comes after ASOS completes a multi-year warehouse automation project.

US customers will be served from the retailer's automated UK fulfillment center from the second half of 2025 and through a smaller local site, ASOS said.

Due to the shift, the retailer expects to take a one-time hit of about 190 million pounds ($231.91 million) on its reported profit in fiscal 2025, and then save between 10 million pounds and 20 million pounds annually in core earnings from financial year 2026.

ASOS intends to market the Atlanta site - seven employees will be offered new roles if possible, and many third-party logistics workers will be given opportunities at nearby locations, the company said.

The firm, which opened a local US office in 2024, said it will continue to grow and build its local presence.