Adidas has increased its profit guidance for the full year ahead as it reported reduced losses in the third quarter helped by strong Yeezy sales.

In a trading update for the three months to September 2023, Adidas reported operating profits of €409m (£354m), a fall from €564m (£488m) in the same period last year.

Total sales were down 6% to €5.9bn (£5.1bn), compared to €6.4bn (£5.5bn) in the third quarter of 2022.

The global sportswear giant attributed the positive performance to the two Yeezy drops in the second and third quarter of the year and said it now expects the potential write-off of the remaining Yeezy inventory to be around €300m (£260m) as opposed to €400m (£346m).

Adidas updated its full-year guidance and said it “now expects currency-neutral revenues to decline at a low-single-digit rate in 2023” as opposed to its previous guidance of a decline at a mid-single-digit rate.

Adidas expects to report an operating loss of around €100m (£ 86.6m) in 2023, improving from the €450m (£390m) in losses the business reported in the previous year.