Adidas raises profit outlook for 2018 after the success of high-end shoes

BERLIN (Reuters) – Adidas (ADSGn.DE) Wednesday raised its earnings forecast for 2018 after selling more high-end sports shoes, although the German sportswear and fashion company has reduced its revenue target due to a lack a drop in sales in Western Europe.

Executive Director, Kasper Rorsted, has focused on improving profitability at Adidas, long behind his great rival Nike (NKE.N), since its arrival in 2016, notably by simplifying product ranges and developing e-commerce, where margins are higher.

Adidas shares, up 12% last year, rose 1.9% after posting 16% to 20% growth in net income from continuing operations, from $ 1.66 billion 1.72 billion euros (1.90 to 1.97 billion dollars). , compared to previous forecasts of 13 to 17%.

But it has reduced its target of neutral turnover growth in 2018 of 2018 by "about 10%."

While Adidas seizes Nike's market share in North America, the American company has made headway in Europe, the Middle East and Africa, aided by a surge in sales. in football.

German rival Puma (PUMG.DE) raised its revenue and operating profit outlook last month by announcing strong sales growth in the Americas and Asia, and saying that its first 20-year-old basketball shoe was well received.

Adidas had already warned that sales in Western Europe would likely remain stable in the second half after failing to focus on new product launches.

On Wednesday, Adidas said adjusted sales of currency effects in the region fell 1% in the third quarter, while they rose 16% in North America and 15% in Asia-Pacific. Online sales jumped 76% over the three-month period.

Revenues for the third quarter rose 8 percent to 5.873 billion euros, down from analysts' forecasts of 5.92 billion euros, while net income from continuing operations jumped 19 percent in the first quarter. 656 million euros, exceeding the consensus.

(1 USD = 0.8731 euros)