Adidas looks to Euro 2024 and Olympic success as UK sales suffer £100m drop
Sales at the UK arm of Adidas suffered a fall of more than £100m during its latest financial year despite growth in its own retail stores.
The division, which is headquartered in Stockport, has posted a turnover of £1.15bn for 2023, down from the £1.23bn it achieved in 2022.
In newly-filed accounts with Companies House, Adidas said the drop was because of a £88m fall in its wholesale turnover and £37.7m in its online channel.
However, the brand’s sales through its own retail stores rose in the year by £14.9m.
The new results also show that Adidas UK’s pre-tax profit was cut from £37.4m to £30.8m in the year.
In a statement signed off by the board, the business said: “2024 has started with high inflation, interest rate rises and geopolitical tensions.
“Despite the above challenges, the 2024 outlook is positive with consumer demand still high for Adidas products mainly driven by the terrace trend in lifestyle.”
Adidas added that it expected to report a benefit from Euro 2024 and the Olympic Games in Paris for its current financial year.
The business also said: “The company maintains good relationships with its customers and continues to develop its business with them.
“The company continues to place new product and marketing initiatives into the UK, whilst serving the consumer directly through its retail and e-commerce channels.”
Adidas’ wholesale revenue fell from £851m to £753m in the year while its online sales also reduced from £293.6m to £255.8m. However, its retail sales rose from £91.4m to £106.4m.
The UK results come after the wider group increased its full-year guidance following better-than-expected results during the second quarter of its current financial year.
The group added that it also expects its operating profit to reach a level of around €1bn (£883.2m) having previously been forecast to total in the region of €700m (£583.4m).