Adidas only weakens in Europe

Augmented profit forecast
07.11.18 11:55

The sporting goods company's business figure is lower than the constant currency forecast.

Thanks to the booming business in the United States and China, Adidas profits
even higher this year than expected. The second largest sports goods company in the world raised Wednesday its forecast to 1.72 billion euros, an increase of 16 to 20%. Up to now, the Herzogenaurach company had a maximum of 1.68 billion euros in prospect.

After nine months, $ 1.62 billion in profits from continuing operations are already recorded before Christmas, 19% more than a year ago. In contrast, the turnover, excluding currency effects, would only increase from eight to nine percent, so far Adidas accounted for ten percent. The reason is stuttering in Western Europe, where sales fell 1% in the third quarter.

Sales increase of eight percent

Adidas corrected the effects of foreign exchange, Adidas recorded an increase in sales of 5.87 billion euros, up 8%, but slightly below expectations badysts. "The increase in sales is due to double-digit growth in our strategic intervention areas, North America, China and e-commerce."CEO Kasper Rorsted (pictured), where margins are sometimes considerably higher than those of the disputed European market in China, rose 26% in the third quarter, 16% in North America and direct sales via the Internet. up 76% in euros, sales rose 3% over the previous year.

The quarterly profit of 656 million euros, up 19%, exceeded badysts' expectations. The return has improved a lot, even though Adidas has spent a lot more money on marketing, Rorsted said. Gross margin in the third quarter was 51.8% (previous year: 50.4%) and is expected to reach 51.4% (50.4%) during the year. Adidas share gained 1.9 percent before hours.

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Reebok continues to weaken

The Adidas problem remains the Reebok brand, which is still lagging behind the previous year. In the third quarter, sales fell five percent. The growth of retro models could not offset the declines observed in the training and running segments. In contrast, the Adidas brand rose ten percent.