GERMANY: Adidas bullish after Q3 profit rises 14%
- Q3 net profit up 14% to EUR303m
- Group revenues rise 8% to EUR3.744bn
- Retail growth offsets increased input costs
Sporting goods giant Adidas is set for a record year after third quarter profit rose 14% on an 8% revenue increase, with margins holding up thanks to increased retail sales.
On a currency-neutral basis, wholesale revenues were up 10% in the third quarter, while retail sales surged up 21%.
The latter helped to offset increases in input costs, but was not sufficient to stop a slight decrease in gross margins, down three percentage points to 47.1%, despite a more favourable sales mix.
North America and China both recorded 13% revenue increases, the latter boosted by double-digit sales gains at Adidas Sport Style. Meanwhile, other Asian markets were up 7% and Latin America’s sales surged up 18%.
“Our record third quarter results were driven by growth in all key geographies, brands and channels,” said Herbert Hainer, Adidas group CEO.
“We will finish 2011 clearly exceeding our initial expectations after already surpassing our 2008 record earnings mark after the first nine months.”
Separately, the German sports group today (3 November) said it is buying outdoor action sports business Five Ten for US$25m, as part of plans to expand its outdoor segment.
Help test our new apparel sourcing tool.
- Outlook 2017 – What next for apparel sourcing?
- $1.7bn package to boost Pakistan clothing exports
- Mexico riots hit apparel retailers and shipments
- Is China about to burst its apparel trade bubble?
- Outlook 2017 – Strategies for sourcing success
- MAS Holdings planning second industrial park
- M&S quality focus finally lifts clothing sales
- Sri Lanka on track to regain EU GSP+ benefits
- Aéropostale to reopen 500 stores across the US
- JC Penney latest retailer to shutter stores?
- Global apparel markets: product developments and innovations, October 2016
- Anti-odour clothing: fresh fashion for an active lifestyle
- Outdoor performance apparel 2016: A broader perspective
- Global market review of lingerie – forecasts to 2022
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar