Tuesday , December 1 2020

Adidas raises expectations after strong results



Sales in Western Europe in the third quarter exceeded one percent – a serious offense for a sports car. Because Nick's rival in the United States has recently grown by six percent in the region. Leader of the global market Adidas is buying from the market.

Adidas Chief Executive Officer Casper Rorsted said on Wednesday at a conference on Wednesday: "We did not respond quickly to these trends. In addition, his company rested on the success of luxury retro crossovers rather than putting effort into basic business with sports equipment. This is a revenge: "We did not come close enough to the consumer".

Taking into account the weak business indicators in Western Europe, Rorsted had to reduce its forecast for the current year. Until now, Dane has pledged a ten-percent conversion rate. Now he has a maximum of nine percent.

On Wednesday morning, the stock market was disappointed with this development. Adidas has lost more than two per cent, the biggest loss of friendship in a friendly environment. This also helped Rorsted simultaneously twist profit forecast.

Profit – up from 16% to 20% this year, but Henkel's head has risen to 17% in the future. The operating margin is expected to rise to 10.8 percent, while the company's CEO has recently increased from 10.3 percent to 10.5 percent. "It is also a good way to achieve our long-term goals by 2020," Rorsted said.

Apart from Europe, Roststed de Reebok continues to disturb. Sales of US subsidiaries fell 5 percent on a currency-neutral basis. The euro has amounted to € 436 million, up from ten percent. Brand's revenue, excluding Rorsted, anywhere other than the US. The only place in the Rebock: The gross margin has grown dramatically, but still far below the Adidas brand value.

In general, sales of the third quarter increased on a currency-neutral basis by 8 percent. Up to 3.9 percent in Euro, up to 5.9 billion euros. This corresponds to the expectations of analysts. The revenues from continuing operations increased by 19 percent to € 656 million. Operating profit increased by 13% and reached 901 million euros.

Especially for Adidas: Americans wear three sneakers and dresses. Trading in North America has increased by 16 percent. In the euro this figure is about 15%, about 1.3 billion. It focuses more on frank in the world's largest sports market than Nike, the world's most competitive. Sales of stickers on the West Coast of the US have grown only by six per cent; but at a much higher level.

The brand is in demand both in China and Asia. Sales in the region have grown by 15% on a constant exchange rate. In the euro this figure reached 1.9 billion by 14%.

"Adidas's high marketing investment is paying now"

Another thing is different: the turnover in their online stores has reached 76%, so Rorsted says. This is particularly important for the Nike's second largest sneaker maker. Because the Group creates the highest margin and is in direct contact with consumers, so they can collect their data and make targeted offers.

Experts consider Adidas to be positive. The profit for the third quarter was much higher than expected, so Andreas Riemann Commerzbank. In Western Europe, business is the only concern nowadays. However, paper is attractive – therefore worth buying.

Roststed responded to the new European leader in the summer and used it. Maybe some cheap offers help attract customers. "We set prices for some products," said CFO Harm Ohlmeyer. This should be easy.


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