Shares in Adidas approached an eight-month high after the German trainer and sportswear maker reported stronger quarterly sales than expected everywhere apart from in North America.
Sales in the US and Canada were most affected by the cancellation of the Yeezy contract with Kanye West, known as Ye, on the back of the rapper's string of anti-Semitic rants and Nazi-sympathising rhetoric.
North America's organic growth tumbled 19.6% or down 5% excluding Yeezy. EMEA saw a lower Yeezy impact and despite dilution from Russia was more resilient at +4.0%. Asia Pacific and Latin America performed well, with Greater China down 9.4% amid a stepped-up approach to inventory clearance.
Chief executive Bjorn Gulden warned of "a bumpy year with disappointing numbers" and said "maximizing our short-term financial results is not our goal", rather that this will be a "transition year to build a strong base for a better 2024 and a good 2025 and beyond".
Adidas is forecasting a loss this year after ending the Yeezy partnership, and reported a quarterly operating profit of €60mln, beating analyst expectations of €15mln as group organic sales were flat compared to a forecast 4% drop.
Gulden said Adidas was sticking to its 2023 guidance, helped by good sales of its Terrace collection of sneakers, leading to it making more Samba, Gazelle and Campus shoes.