(Reuters) -Adidas’ strong first-quarter results were helped by growth across all regions, excluding North America, where inventory levels are still high, the German sportswear brand said on Tuesday.
Like other apparel and footwear retailers in the United States, Adidas has been struggling with excess stocks and cutting prices to move products off the shelves.
Revenue in North America, its second-biggest market, declined 4% year-on-year to 1.12 billion euros ($1.20 billion) in the first three months of 2024, improving sequentially from a decline of more than 20% in the last quarter of 2023.
“Double-digit growth in Europe, Emerging Markets, and Greater China was partly offset by a decline in North America, reflecting the conservative sell-in approach in response to still elevated inventory levels in this market,” the company said in a statement.
However, “much healthier” inventory levels, reduced discounting, and lower sourcing costs helped drive Adidas’ gross margin up by 6.4 percentage points to 51.2%.
($1 = 0.9342 euros)
(Reporting by Linda Pasquini and Helen ReidEditing by Miranda Murray and Eileen Soreng)
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