Annual Report 2023


Topics Filter


Three people running during the sunset (Photo)

Economic and Sector Development

In its transition year 2023, adidas recorded better-than-expected results against the backdrop of geopolitical tensions, macroeconomic challenges, as well as industry-wide elevated inventory levels. Revenues were flat on a currency-neutral basis. The gross margin increased 0.2 percentage points to 47.5%, while operating profit amounted to € 268 million in 2023.

Economic and sector development

Global economy shows resilience in 20231

The global economy remained resilient in 2023 despite facing elevated, albeit slowing, inflation and rising geopolitical conflicts. In this context, the global gross domestic product (GDP) increased 2.6% in 2023. While the surge in energy and commodity prices due to the ongoing war in Ukraine has moderated somewhat, inflation remained elevated and continued to weigh on household incomes and consumer sentiment throughout the year. During the first half of the year, global central banks further tightened monetary policy, resulting in higher interest rates. During the second half of the year, however, most central banks halted interest rate increases. This challenging macroeconomic environment impacted global economic activity, as growth in advanced economies slowed to 1.5% in 2023. Meanwhile, developing economies proved relatively resilient as growth slightly accelerated to 4.0% in 2023. Nevertheless, restrictive monetary policy and the conflict in the Middle East, in addition to the ongoing war in Ukraine, left their mark on both advanced and developing economies. Globally, the risks of further escalation of geopolitical tensions, supply chain disruptions, climate-related disasters and financial stress amid elevated borrowing costs remain.

Sporting goods industry grows moderately in 2023

Despite facing persisting challenges, the global sporting goods industry proved its resilience in 2023. The overall market expanded amid continued pressure on input costs and supply chains as well as subdued demand due to lower discretionary spending in a high inflation environment. Additionally, the industry faced particularly high inventory levels globally in 2023, which were countered by increased promotional activity across the sector. While most markets returned to healthier inventory levels toward the end of 2023, the marketplace in North America, in particular, continued to face excess stock. Despite these challenges, demand globally benefited from major sports events such as the FIFA Women’s World Cup Australia & New Zealand and the Rugby World Cup France. In addition, recurring tournaments such as the UEFA Champions League and major US sports leagues drove consumer excitement. Furthermore, the sporting goods industry continues to profit from a casualization trend, as well as increased participation in sports and healthier lifestyle choices around the world. Comfort, quality, durability, and sustainability continued to influence consumer purchasing decisions. At the same time, the sporting goods industry is also subject to risks of lower consumer demand due to pressure on discretionary spending power amid economic downturns, as well as further geopolitical tensions and supply chain disruptions.

Regional GDP development1,2 in %

Regional GDP development (Barchart)
1 Real change in percent versus prior year; 2022 and 2021 figures restated compared to prior year.
2 Source: World Bank as of January 9, 2024.
3 Includes Emerging Europe and Central Asia.
4 Includes East Asia and Pacific.

1 Source: World Bank Global Economic Prospects.

This Group Management Report is a combined management report. It contains the Group Management Report of the adidas Group and the Management Report of adidas AG.
The Declaration on Corporate Governance is part of the Annual Report.
Declaration on Corporate Governance