Adidas as upped its full-year outlook

Adidas as upped its full-year outlook

Adidas has upped its full-year outlook after strong brand momentum contributed to a better than expected first-quarter for the German sporting giant.

In a preliminary trading update, group revenues increased 22% on a currency-neutral basis and 17% in Euro terms to EUR4.8bn (US$5.4bn). 

As a result of a higher gross margin and operating expense leverage, net income grew 38% to EUR350m from EUR255m a year earlier. 

In light of what Adidas says is "strong brand momentum," the company has increased its guidance for 2016 and now expects currency-neutral sales to grow at a rate of around 15% in 2016. It also expects to continue to generate operating leverage throughout the remainder of the year. 

As a result, net income is now forecast to grow at a faster rate than the top line and increase between 15% and 18%.

The company is expected to publish its full quarterly results on 4 May.