Adidas sales accelerate
On Wednesday, Adidas reported their 3rd quarter results that beat analyst expectations for net profit and sales.
The German sportswear company believes that there would be a significant acceleration of sales in the fourth quarter after reporting stronger-than-expected sales and operating profit for the third quarter.
According to Reuters, the third-quarter sales of Adidas surged a currency-adjusted 6% to 6.41 billion euros ($7.10 billion), beating the average analyst forecasts for 6.32 billion euros. The operating profit was flat at 897 million euros versus the analyst consensus for 882 million euros.
The 6% sales growth during the third quarter rose from the 4% sales growth rate posted in the first half of 2019.
According to Adidas, by region, sales in North America picked up remarkably, where the company had to go through challenges earlier in the year. At constant currencies, sales there ascended 10% in the quarter, soaring from the growth rate of 5.8% from the previous quarter.
Chief Executive Kasper Rorsted stated that he was confident of the sales getting a strong boost in the fourth quarter and the company is expecting to make net profits between 1.88 and 1.95 billion euros this year, up between 10 and 14 percent on 2018’s result.
“We confirm our full-year outlook and remain confident about a significant top-line acceleration during the fourth quarter,” chief executive Kasper Rorsted said in a statement.
(Reference: Reuters, CNBC, Market Watch, The Malaysian Reserve)