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German sportswear company Adidas has raised its earnings forecast for 2018, citing a strong financial performance in the first nine months of the year, but reduced its revenue targets due to weaker than expected growth in Western Europe.
While Adidas appropriates the market share of its rival Nike in North America, the American company has made inroads into Europe, the Middle East and Africa, where its sales have increased by 9% during the quarter ended August.
Adidas CEO Kasper Rorsted told CNBC on Wednesday that the company had had a "stellar quarter" and would have a stellar year.
"Although we are investing more than ever in our company and in managing our investments, we will have the highest margin in the history of the company, or 10.8% at the end of the year. We are therefore extremely satisfied with all of our activities, particularly in the United States, Asia and online, "he told CNBC's Squawk Box Europe.
Adidas had already warned that sales in Western Europe would probably remain stable in the second half of the year, after the company had not focused enough on new product launches.
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