Adidas AG Q3 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Graham Ian Renwick - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Just firstly on full price sales. You made quite a few comments there of making good progress on full price sales mix. Just to put a bit more context to that. Are you able to tell us where full price sales were as a percentage of that brand sales ex Yeezy pre-pandemic, where that mix is today and what your ambition is the full price sales mix in the midterm? And on running, it was flat overall in Q3. We've seen the headlines of athletes breaking records in Adizero shoes. You mentioned the Adizero family is up strong double digit. I presume that's from a low base. I just wondered how long it takes to build that credibility and better distribution in the commercial segment. So when will we see Adizero success. As the athlete level starts to cascade down to stronger growth across the broader running business, should we be expecting a big impact as soon as next year? Are you already seeing that stronger demand in order books? Or is this something that needs to be developed over a longer time frame?

Question: Jurgen Kolb - Kepler Cheuvreux, Research Division - Analyst : Bjorn, first question for you, again, around the order book. Thanks for mentioning also Q1 and Q2 order book. When you last time talked about the order book for the H1 next year, it sounded at least as if that's a negative one that was down because of especially very reluctant retailers, specifically coming from North America. And I was wondering, as you said, this is building, are we in positive territory, especially also maybe with a little bit more optimism coming from North America? Moving on to the second half, very strong, as you pointed out. Maybe one indication on price and REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 08, 2023 / 2:00PM, ADSGn.DE - Q3 2023 Adidas AG Earnings Call volume. Is there a price component included in this order book? Or is it more like-for-like? And again, also here on North America, if you could give us an indication if you're seeing good demand from North America also in the second half? And the second part of the question, Fear of God, a good news, it's coming to the market. I was wondering if you could share with us some thoughts as to why that took a little bit longer. And if maybe any of the plans related to that category has changed or if that still is as initially planned, but just a little bit of delay here and there?

Question: Jurgen Kolb - Kepler Cheuvreux, Research Division - Analyst : Just a quick one on pricing in the order book. Is there a component of price increase? Or is it rather flat? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 08, 2023 / 2:00PM, ADSGn.DE - Q3 2023 Adidas AG Earnings Call

Question: Jurgen Kolb - Kepler Cheuvreux, Research Division - Analyst : It's a nice problem to have the higher price and higher demands.

Question: Andreas Riemann - ODDO BHF Corporate & Markets, Research Division - Analyst : First question on fall/winter24. You said this is the first collection from you and the team, Bjorn. And we know you want a more local product. You want a bit more wholesale, you want to cover more niche categories. So what strategic aspects are already reflected in this fall/winter24 product? This would be the first question. And somewhat linked to that, my second question, other than China, what are the countries where you see the biggest need for a more local adidas product?