FRANKFURT, Nov 6 — German sportswear maker Adidas said today it remains confident of hitting full-year financial targets after a profit slip in the third quarter, buoyed by fast-rising sales.
In July-September, Adidas’ bottom line fell back 1.8 per cent year-on-year, to €646 million (RM2.9 billion), slightly beating forecasts from analysts surveyed by Factset.
But revenues surged 9.1 per cent to €6.4 billion.
Double-digit growth in China and North America was Adidas’ biggest sales driver, while Europe inched up more tentatively.
Its flagship brand with the three stripes sold six per cent more even in a year without mammoth sporting events, while struggling US subsidiary Reebok also lifted sales slightly.
Meanwhile growth in online sales slowed to 14 per cent in the third quarter, compared with 76 per cent a year before.
Despite the growth, operating, or underlying profit at Adidas also fell back, shedding 0.3 per cent to reach €897 million.
The operating result was weighed down by advertising costs as the company looks to rev up sales in the second half of the year.
“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.
The Bavarian group expects to make net profits between €1.88 and €1.95 billion this year, up between 10 and 14 per cent on 2018’s result. — AFP
