Adidas confirms outlook despite lower profits

Adidas confirms outlook despite lower profits
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Sports giant Adidas has seen its turnover further increase in the third quarter. Although net profit fell by 2%, the company is sticking by its outlook.

 

Overall growth

In the third quarter, Adidas saw a turnover of 6.41 billion dollars, 9 % more than during the same period last year. At constant exchange rates there was an increase of 6 %. Sales increased in all regions, peaking in emerging markets (+ 14 %), Russia (+ 13 %) and North America (+ 10 %). In Europe, revenue increased by 3 %.

 

The operating margin decreased by 1.3 percentage points to 14 %, a decrease which - according to Adidas - is mainly due to a planned shift of some costs from the fourth quarter to the third quarter, in order to achieve a more balanced distribution. Partly as a result of this, the operating profit fell from 901 million euros to 897 million euros. Net profit was 2 % lower compared to the same period last year, partly as a result of the implementation of new accounting standards (IFRS 16).

 

Over the first nine months of the year, Adidas' turnover increased by 5 %. In fact, net profit from continuing operations increased by 8 %. The company has high expectations for the fourth quarter and has kept to its outlook for the whole year: sales growth of between 5 and 8 % and net profit of between 1.88 and 1.95 billion euros.