There were signs of progress for Adidas in the company’s recent second quarter financials, but the North American market was not one of them. Improved sellthroughs for some products and an approximate $392 million boost from sale of some Yeezy products helped the company revise its FY23 forecasts upward. The Three Stripes now sees its revenues falling by mid-single digits this year versus high-single digits as thought in March and its annual operating loss to be 36 percent better than its prior outlook.

“The market is still very volatile, we continue to see a lot of uncertainty for the rest of the year,” CEO Bjorn Gulden said in a statement. “…Our story is the same as we said at the beginning of the year: We are using 2023 to clean inventories, work on future products, improve the way we work, build better partnerships, and lay the foundation for a better 2024 and a good and profitable adidas in 2025 and 2026. 2023 is not about trying to show short-term results.”

North America was the brand’s worst-performing region in the period ended June 30 with sales down 16 percent where the market’s high inventory levels made it difficult for the company to sell-in merchandise. On the product front, lifestyle sales were down despite demand for the brand’s Samba, Gazelle, and Campus franchises. But performance products, including the latest iterations of the Predator, X, and Copa soccer boots and Barricade tennis products, showed positive sales momentum, the company said.