Adidas faces a year of transition, said Citigroup, which remains a buy on the stock and raised the target price to €190 for the German fashion retailer.
Citi said Adidas will focus on simplifying the organisation, rebuilding brand desirability and reducing excess inventories in 2023, “yet revenue and profit guidance is potentially conservative.”
The analysts said last year was one to forget following the termination of the lucrative Yeezy partnership with rapper Kanye West and some revenue and margin pressures.
However, the year ended on a positive note with the appointment of former Puma CEO Bjorn Gulden as boss.
In his first speech as boss, Gulden highlighted the refocus on the product, customers, distribution and athletes and communication to “start to build a profitable business again in 2024.”