Adidas Returns to 4Q Sales Growth; Sees Strong 2021 Recovery
10 March 2021 - 6:04PM
Dow Jones News
By Joshua Kirby
Adidas AG said Wednesday that it returned to slight growth at
constant currencies in the last quarter of 2020, boosted by
e-commerce and retail sales, and that it expects strong rebounds in
its top and bottom lines and margins in 2021.
The German sporting-goods company booked fourth-quarter sales of
5.55 billion euros ($6.60 billion), up 1% adjusted for currency
effects from the same period of 2019. Analysts had expected sales
of EUR5.47 billion in the quarter, according to FactSet.
Operating profit fell to EUR225 million in the quarter from
EUR245 million previously. The company's operating margin was close
to flat at 4.1%.
For the full year, net income from continuing operations was
EUR429 million, plunging from EUR1.92 billion previously, on sales
that fell 14% to EUR19.85 billion, the company said.
For 2021, Adidas said it expects sales rebounds in all
geographical areas, with Greater China, Latin America and
Asia-Pacific to record the strongest increases. This should take
the operating margin to around 9%-10%, the company said, while net
income from conditioning operations should grow to EUR1.25
billion-EUR1.45 billion.
Adidas is set to release its next five-year plan later
Wednesday. The company said recently it is resuming dividend
payouts at a rate of EUR3 a share.
Write to Joshua Kirby at joshua.kirby@dowjones.com;
@joshualeokirby
(END) Dow Jones Newswires
March 10, 2021 01:49 ET (06:49 GMT)
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