Germany-based sports footwear and apparel brand adidas has reported an operating profit of €176m ($194.6m) in the second quarter (Q2) of fiscal year (FY) 2023.

This figure is down from €392m in the corresponding period in FY22.

The company’s operating margin for the quarter was 3.3%, down from 7.0% in the 2022 quarter.

Revenues of adidas were €5.34bn in Q2 FY23, a decrease of 5% from €5.59bn in the same period a year ago.

Its gross margin increased 0.6 percentage points to 50.9% over the quarter against 50.3% in Q2 FY22.

In a statement, adidas said: “The company’s top- and bottom-line development in the quarter was positively impacted by the first sale of some of its Yeezy inventory as announced at the end of May. In addition, the underlying adidas business also developed slightly better than expected.”

The company also revised its full year outlook and now expects currency-neutral revenues to decline at a mid-single-digit rate from its previous guidance, where it expected a decline at a high-single-digit rate.

In addition, adidas expects its underlying operating profit to be around the break-even level.

The brand also expects the potential write-off of the remaining Yeezy inventory to be €400m compared with the initially forecast of €500m.

It expected an operating loss of €450m in 2023 against the previous expectation of €700m.

The Financial Times reported recently, adidas received orders worth more than €508m for the first batch of online sales of its unsold inventory of Yeezy shoes.