Adidas Raises Outlook After Beating 2015 Targets -- Update
12 February 2016 - 07:08AM
Dow Jones News
By Ellen Emmerentze Jervell
FRANKFURT-- Adidas AG on Thursday raised its outlook for the
second time in four months after exceeding its revenue and profit
targets for 2015.
Based on preliminary figures for 2015, Adidas said
fourth-quarter net profit rose 12% to EUR720 million ($813
million), compared with a year earlier, after a strong performance
from its Adidas and Reebok brands and double-digit sales growth in
Western Europe, China and Latin America.
"We are in great shape." Chief Executive Herbert Hainer said.
"This gives us every confidence that we will again grow the top and
bottom line."
Adidas said it expected currency-neutral sales to rise by a
double-digit percentage in 2016.
The German sportswear company has in recent months been
recovering from a period of sliding sales, and its earnings have
been hit by currency losses. In November, it raised its full-year
2015 earnings target after sales bounced in the third quarter. In
the past year, the company's share price has increased roughly
40%.
"Despite the ongoing macro concerns, the sporting-goods industry
as such is experiencing strong momentum globally and Adidas is
benefiting from this as well," said Berenberg analyst Zuzanna
Pusz.
Mr. Hainer said the company also experienced "accelerated
momentum" in North America.
Adidas has gained traction in the U.S. lifestyle sector lately,
helped by its cooperation deal with rapper Kanye West and the
launch of his Yeezy Boost shoe series. In 2015, Adidas Originals,
the company's urban streetwear unit, was the most-liked sneaker
brand on social-media platform Instagram, with 78.8 million likes
in the course of the year.
Matt Powell, a sports-industry analyst at NPD, said recent
Adidas sales in the U.S. have been positive. Retailers have been
posting "good liquidations," he said.
Mainfirst bank analysts said Adidas's current momentum in North
America and Western Europe was "as expected," given that
wholesalers continue to pull forward orders ahead of the European
soccer championship and Rio de Janeiro Olympics.
In January Adidas said Mr. Hainer would be succeeded by outsider
Kasper Rorsted, a star in the German financial community and
currently CEO of soap and beauty-products maker Henkel AG.
For all of 2015, Adidas's sales rose 16% to EUR16.9 billion,
compared with a year earlier, when adjusted for currency
effects.
Adidas said it would increase its marketing investments in
2016.
The company plans to release its complete full-year results on
March 3.
Write to Ellen Emmerentze Jervell at ellen.jervell@wsj.com
(END) Dow Jones Newswires
February 11, 2016 14:53 ET (19:53 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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