Adidas AG (OTC:ADDYY) Q3 2022 Earnings Call Transcript

Kasper Rorsted: First of all on basketball. Again I wouldn’t do justice to explain how deep the basketball, the launch will be from a product point of view. But we will launch kind of the full set, not just what we launched in December and early next year, but what you will see in the launch events in December is the full breadth and depth of the basketball. Category, even so it doesn’t all launch in the first month. But we want to make a big event that the consumer and of course the consumer and media sees the whole size and the ammunition that we have in basketball even so we’ll be staggered from a launch point of view, going into next year, month by month. On running. I mentioned earlier how successful also the Supernova is.

The whole concept from hero to Halo, and building credibility fields for the marathon wins that we have, and then commercializing these technical silos and more technical silos to come going forward to see swift technology in everything that is coming in 2023. That is always the concept and is working, given the growth rates that we have. And I could not tell you all what disclose in details by franchise in how we commercialize that, but rest assured with the growth rate that we have that we continue to have next year. That is the hero to Halo concept that is working, and maybe you can repeat the footlocker question. I’m not sure I captured that correctly Omar.

Omar Saad: Sorry. Yes. Both originals and in the U.S. footlocker channels that we think you guys have highlighted as opportunities for the brand. The originals, relaunch when a lot of that product hits the market, and then the footlocker opportunity expanding the space and footlocker where do we stand on that? Thanks.

Harm Ohlmeyer: Yes, first and foremost, it was important for us to have as a teaching partnership with footlocker that we have announced because we want to be more than just a product of footlocker. We are rolling out significant, new significant investment outside the footwear walls. And whenever we do that, at footlocker, we get much higher comps to prior the footwear wall rollouts. Key to that is also not just the original product that we are bringing out whether it’s a foot-roll or the rivalry that is coming soon. But also the setup is basketball is fundamental for the consumer that is shopping at footlocker. So the combination of partnership first, Footwear Wall significantly across us into many footlocker doors, much better comps, originals with new products coming in, and then basketball as a key opener to the footlocker consumer. That is definitely working so far but it’s a plan to accelerate that going into 2023.

Omar Saad: Thanks Harm.

Operator: Next questions is from the line of James Grzinic form Jefferies International. Please go ahead.

James Grzinicl: Yes. Thank you. Good afternoon. I had two quick ones. The first one is, Harm can you perhaps provide us with a split of inventory across apparel and footwear, just to get an understanding of how the average position really looks like in the two categories? And secondly, where do you think the overall marketing spend will be in 2022 and how, given your cost size program, how do you expect that to develop is 2023 please?