S&P turns adidas view to negative

S&P said it revised its outlook for adidas AG to negative from stable and affirmed its A+ issuer rating.

“Adidas AG's third profit warning this year, stemming from continuing challenges in Greater China, expected deterioration of consumer demand in Western countries, and the announced termination of the profitable Yeezy collection's distribution, will hurt its 2022 financial results and raise uncertainties around its 2023 operating performance,” the agency said in a press release.

S&P said it forecasts a material deterioration of the S&P Global Ratings-adjusted EBITDA margin to about 9% in 2022 from 14.6% in 2021, leading to adjusted debt to EBITDA rising close to 2x in 2022 and slightly reducing toward 1.5x by the end-2023.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.