Adidas 3Q Sales Beat Expectations, Backs 2019 View
06 November 2019 - 8:24AM
Dow Jones News
By Cristina Roca
Adidas AG (ADS.XE) on Wednesday reported third-quarter net
profit and sales that beat analysts' expectations, and backed its
2019 view.
The German sporting goods company posted net profit of 646
million euros ($717.2 million) for the quarter, lower than the
previous year's EUR658 million as previously flagged by the
company, but better than analysts' expectations of EUR635 million,
according to a FactSet estimate.
The decline in net profit was partly due to the adoption of a
new accounting standard, Adidas said.
Sales for the quarter were EUR6.41 billion compared with EUR5.87
billion the year previous, beating analysts' forecast EUR6.32
billion, according to FactSet.
At constant currencies, sales grew 6% during the third quarter,
accelerating from the 4% sales growth rate posted in the first half
of the year.
By region, top-line momentum improved markedly in North America,
where the company faced challenges earlier in the year. At constant
currencies, sales there grew 10% in the quarter, accelerating from
the previous quarter's 5.8% growth rate and appearing to outpace
its rival NIKE Inc. (NKE), which reported 4% organic sales growth
in the region for the quarter ended Aug. 31.
Russia and Emerging Markets also posted double-digit sales
growth rates, while the Greater China market continued to be
buoyant, the company said.
Adidas said it continues to expect a strong pickup in topline
momentum during the fourth quarter of the year.
For 2019, the company backed its guidance of 5-8%
currency-neutral sales growth, a gross margin of about 52% and
operating margin of about 11.3-11.5%.
Write to Cristina Roca at cristina.roca@dowjones.com;
@_cristinaroca
(END) Dow Jones Newswires
November 06, 2019 02:09 ET (07:09 GMT)
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