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

Graham Renwick: Hello, good afternoon. Sorry about that. Thanks for taking my questions. I just have two. Just thinking about momentum into the first half of 2023, you had a good step up in Q4. On the last call, you’re very helpfully provided us your growth in order books, H2, I was just wondering how they are shaping up for H1, you’ve talked to the stronger product pipeline, but you’re also a bit more cautious and buying for spring summer. So just wonder what sort of growth order books are currently indicating into the first half. And then just on 2023 net income, just wondering how we should interpret the net income bridge and the €950 million stop point you’ve given? There’s a list of moving parts, of course, but the shaded area of the bridge looks to suggest you expect slightly more negatives and positives. So I’m just wondering if we should be currently assuming that net income next year should be somewhere between €750 million, €950 million? Thank you.

Harm Ohlmeyer: Yes, hi, Graham, first on the 2023 momentum. So not going to comment on Q1 or Q2 right now. We give a guidance in March. And then we will give a guidance in March, we’re not going to comment on that at this stage. Secondly, when it comes to the net income bridge, as I mentioned, there’s a lot of puts and takes, we’re currently we can only speculate about the magnitude, whether it’s and freight rates, or Yeezy mitigation plan. So in some cases, it even remains uncertain, where the impact is going to be a positive or a negative. But if you asked me today, I would indeed see a higher likelihood that some negative drivers, why there will be some positive drivers. And again, you can clearly change. And I have to admit, even as a CFO, I’ve never been in a situation in November to prepare a plan also those who advisory board in such a volatile environment.

So want to keep it open. But we want to make sure that we are rather focusing on the actions that need to be taken. And then we will come out in March with the right guidance. But again, remain confident with the product pipeline that we have. And we always will play by the month, whether it’s offense or defense. We want to make sure that first and foremost, we have flexibility in the plan. And that’s what we need to get prepared for. Because the volatility and all the crises that we deal with since two and a half years, will not go away in the short term. That’s we want to keep some flexibility and give the right guidance in March and take the time. There’s not an easy situation right now. But let’s get used to the volatility and rest assured we give it a good shot in March then.

Graham Renwick: Okay, great. Thank you all.

Harm Ohlmeyer: Thank you.