logo

Sign me up!

FREE MEMBERSHIP

Get your FREE Innovation in Textiles membership. Sign up now...

9th November 2018, Herzogenaurach

adidas increases outlook for 2018

adidas, a leading sportswear and equipment brand, has reported an increase in net income from continuing operations by 19% to EUR 656 million in the third quarter of 2018. Revenues grew by 8% on a currency-neutral basis and 3% in euro terms to EUR 5.873 billion. The company’s gross margin increased by 1.4 percentage points to 51.8%. Operating profit was up by 13% in the quarter to a level of EUR 901 million, resulting in an operating margin improvement of 1.3 percentage points to a level of 15.3%.

Due to the strong financial performance in the first nine months of 2018, adidas has increased its profitability outlook for the year and specified the targeted range for its top-line growth. The company now projects currency-neutral revenues in 2018 to grow between 8% and 9%, at the lower end of the communicated range (previously: around 10%), due to lower-than-initially-expected growth in Western Europe.

adidas headquarters. © adidas

At the same time, adidas now forecasts net income from continuing operations to reach between EUR 1,660 billion and EUR 1,720 billion, reflecting an increase of between 16% and 20% compared to the prior-year level of EUR 1,430 billion.

The company’s gross margin is now projected to increase up to 1.0 percentage points to a level of up to 51.4%. This, together with the projected top-line growth, is expected to drive an increase in operating profit of between 12% and 16% (previously: increase between 9% and 13%).

Consequently, the operating margin is expected to improve by around 1.0 percentage points to a level around 10.8%. Basic EPS from continuing operations is forecast to increase at a rate between 15% and 19%, compared to the prior-year level of EUR 7.05, excluding the negative one-time tax impact in 2017, not taking into account any decrease in the number of shares outstanding due to the company’s share buyback programme.

www.adidas-group.com

This article is also appears in...

Comments

Be the first to comment on adidas increases outlook for 2018

|