Adidas Lifts Forecast After Profitable 3Q
Herzogenaurach, Germany (AHN) – Adidas reported 25 percent growth in its third quarter profits on Thursday, beating analysts’ expectations. The German sports goods manufacturer upgraded its outlook for the full year.
Net income for the period ended Sept. 30 rose to 266 million euros ($378 million), or 1.27 euros a share, from 213 million euros, or 1.03 euros per share, last year.
Sales spiked 20 percent to 3.47 billion euros ($4.9 billion) from 2.89 billion euros in the same quarter a year ago.
Excluding the effects of currency, revenue from the company’s stores rose 16 percent while its wholesale business increased 8 percent.
All regions reported strong performance during the quarter. Revenue in North America jumped 14 percent on a currency-neutral basis, led by a 15 percent rise in sales of the Adidas brand and a 25 percent increase for Reebok.
In China, sales increased 9 percent because of growth of both retail and wholesale businesses.
Gross margin increased to 47.3 percent from 45.3 percent last year.
“Double-digit revenue growth in football, Adidas Sport Style and Reebok year-to-date, as well as a resumption of growth in Greater China in the third quarter all reflect a well-executed 2010 strategy,” chief executive Herbert Hainer said in a statement.
Adidas revised its full-year sale forecast from a mid-single-digit increase to an 8 percent rise, excluding currency effects.
The company said sales and profits will rise at a mid-single-digit rate in the 2011 fiscal year. Earnings per share are expected to grow between 10 percent and 15 percent.
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