Stellar Q2 for adidas signals another raise in sales outlook
You can envisage the lip-licking. adidas surely can’t wait for the Olympics to begin, although there was no mention of the event at all in its Q2 trading statement that delivered yet another strong set of quarterly figures. How strong? “Outstanding”, the German athletic sportswear giant said Thursday.
Currency neutral group revenues increased 21%, driven by strong momentum at both adidas and Reebok, it said. In euro terms, sales were up 13% to €4.42bn.
And the good figures kept on coming. adidas brand grew 25% on a currency-neutral basis, driven by double-digit sales increases in the key performance categories running, football and training as well as at adidas Originals and adidas neo.
With the exception of Russia/CIS, where revenues grew at a mid-single-digit rate, the company recorded double-digit growth in every geography: North America, Greater China and Western Europe, up 32%, 30% and 30%, respectively.
Reebok revenues increased 7% during the quarter, with double-digit growth in Western Europe, Greater China, Russia/CIS and Japan.
The development was supported by double-digit sales increases in Classics as well as mid-single-digit improvements in the training and running categories, it said.
Even revenues at TaylorMade-adidas Golf grew 7%, driven by double-digit growth at TaylorMade.
“The stellar financial performance in the second quarter is proof positive that our strategy is paying off,” commented outgoing CEO Herbert Hainer.
He added: “I am proud to confirm that we are in great shape. 2016 will be a year of records for the adidas Group. But we will not stop there. In the years to come, we will continue to grow across all categories, channels and geographies and drive our profitability to new heights.”
adidas said it now expect sales for the year to increase at a rate in the high teens from around 15% previously on a currency-neutral basis. The top-line development will be supported by double-digit growth in all regions except Russia/CIS, where sales are now forecast to grow at a mid-single-digit rate.