Adidas Slides After Cutting 2019 Sales Guidance as Nike Renews European Rivalry

Adidas AG (ADDYY) shares in the market of the German DAX Wednesday after the sportswear giant trimmed it full year of the European market as rivals Nike (NKE) and Puma (PUMSY) continues to challenge its home court dominance.

Adidas said operating earnings for the three months ending in September jumped 19% from the same period last year to € 656 million ($ 752 million), topping analysts' forecasts, as rose 8% to € 5.87 billion. However, Adidas said full year sales would be between 8% and 9%, it would be better than 20%, it would be better than 20% 2018 bottom line to as high as € 1.72 trillion.

"Kasper Rorsted told CNBC television on Wednesday," CEO of Kasper Rorsted told CNBC television on Wednesday. . "The Brexit decision is perhaps the most important in Europe."

Adidas shares were up 3.7% lower in the opening hours of trading in Frankfurt, falling to the bottom of the DAX performance index and changing hands at € 198.20 each, a move that the stock's year-to-date gain to around 15%.

Western European sales, which rose 17% in 2017, have been largely flat this year, as its Reebok unit continues to underperform with a 5% fall in revenue 5% "as double-digit growth in Classics was more than offset by declines in Training and Running, "the company said.

Overall Western European sales for the third quarter fell 1.3% to € 1.645 billion, Adidas said, while Nike's Europe, Middle East and Africa sales rose 11% over its first quarter, which ended it August, to just over $ 2.6 billion.

Adidas' gross margin, a key metric for profitability, rose 1.4 percentage points to 51.8% thanks to "improved pricing, channel and category mix … and lower sourcing costs."

Nike said in September that its first quarter gross margin, improved by 50 basis points to 44.2%, noting that selling and administrative expenses rose 7% to just over $ 3.1 billion.

Nike CFO Andy Campion said the group sees revenue growth in "the high single digits," said the head of the Fiscal Year.

Nike shares were up 0.4% higher in pre-market trading on Wednesday, indicating an opening price of $ 76.90 and a year-to-date advance of around 23%.