Adidas Raises Full-Year Target After Q2 Sales Rise 20%
The German activewear giant said it now expects sales to grow between 17 and 19 percent this year.
PARIS — Adidas on Thursday raised its full-year guidance, citing a strong first-half performance.
The German activewear giant said in a statement with preliminary results it now expects currency-adjusted sales to grow between 17 and 19 percent this year, up from its previous target of 12 to 14 percent, versus the adjusted 2016 net sales of 18.48 billion euros for the company’s continuing operations, which mainly consist of the Adidas and Reebok brands.
Net income from continuing operations is now expected to increase at a rate of between 26 and 28 percent in 2017, to between 1.36 billion euros and 1.39 billion euros. This compares to a previous forecast of between 1.2 billion euros and 1.23 billion euros, at an increase of between 13 and 15 percent, respectively.
The German sportswear company said revenues from continuing operations in the three-month period ended June 30 rose 20 percent in euro terms to 5 billion euros. It recorded an operating profit of 505 million in the second quarter, up 18 percent year-on-year. This was despite the one-time gain of around 70 million euros related to the early termination of the Chelsea FC sponsorship that was included in the prior year’s quarter.
Adidas reiterated that due to the existence of signed agreements to divest its TaylorMade, Adams Golf, Ashworth and CCM Hockey brands, the results from these businesses are reported as discontinued operations. The company earlier in the day announced that CCM Hockey is to be sold to a newly formed affiliate of Canada’s Birch Hill Equity Partners.
Adidas will release full financial results for the first half on Aug. 3.