Adidas UK sales dip in latest financial year, sales shift to own-retail from wholesale

By

Sandra Halliday

Published
January 9, 2024

Adidas UK has filed its latest accounts at Companies House and said that sales dipped slightly in 2022 after seeing a big rise in the previous year. 

Sales fell 4.3% in the year to December 2022, reaching £1.29 billion after reaching £1.236 billion in 2021 (when they’d risen a massive 23.6%). 

While it can be frustrating looking at results that far back and not having country-specific updates since then, it can be interesting to see some of the detail in the report. 

For instance, the fall in the latest year consisted of a £37.9 million drop in wholesale but an increase of £19.4 million via its own retail stores. There was also a rise of £17.1 million in its e-commerce channel so it's clear the direction Adidas UK is heading in.

But of course, there was a reduction of £54.1 million in turnover reported from sales of Reebok products following the sale of that brand at the end of February that year.

Gross profit increased to £296.3 million from £277 million. Pre-tax profit fell 5% to £37.4 million. It had risen 63.6% in the previous year to reach £39.8 million. Net profit for the financial year was £31.1 million, Down from £32.2 million.

On the plus side, the gross profit margin was 24%, up from 21.5% and the operating profit margin rose to 3.3% from 3.2%. 

The company also said that 2023 had started positively with consumer demand remaining high for its products, despite high inflation and interest rate rises and the discontinuation of its Yeezy product line.