Photo: Hypebeast
Adidas increased revenue by 8% in the third quarter of 2018
The revenue of the German sports industry giant grew in the third quarter of 2018 by 8% (excluding currency fluctuations) and by 3% in euros. As a result, Adidas increased its annual forecast, writes Worldfootwear. com.
“We again achieved quality growth in the third quarter. The increase in revenue was due to a double-digit increase in sales in our strategic markets - in North America, Greater China and thanks to e-commerce. “We have made significant improvements in profitability, despite a significant increase in marketing investments and severe currency restrictions,” comments adidas CEO Casper Roersted. “Thanks to these results, we are confident that we will achieve a higher than expected level of profitability in the 2018 year and we will adhere to our long-term strategy, planned before the 2020 year.”
In the third quarter, revenue excluding currency fluctuations increased by 8%. Adidas brand revenue grew by 10%, due to double-digit sales growth in Sport Inspired and Sport Performance, the latter figure was due to double-digit sales growth for training and running goods. Reebok brand revenue fell by 5% - a double-digit growth in sales in the Classic category, offset by a drop in goods for training and running. The company's revenue was largely due to the growth in the channel of direct sales through e-commerce, where revenue for the quarter grew by 76%. The company's revenue in euros grew by 3% and amounted to 5,873 billion euros (in 2017 year - 5,677 billion euros).
In terms of return on sales markets, revenue growth in the third quarter was driven by continued strong position in Adidas strategic regions. The cumulative sales of Adidas and Rebook continued to grow in North America (+ 16%), in the Asia-Pacific region (+ 15), in which Greater China (+ 26%) is the growth driver. The company's revenue in Russia / CIS increased by 7% - a positive impact on sales was made by the holding of the World Cup in Russia, and this offset a significant number of store closures over the past 12 months. Although revenue in Latin America did not change, sales in emerging markets declined by 2%. Revenues in Western Europe decreased in line with expectations by 1%.
Over the first 9 months of 2018, Adidas revenue grew by 9% in neutral currency and 3% in euros, to 16,682 billion euros (16,162 billion euros in 2017). Adidas brand revenue in neutral currency increased by 11%, and Rebook revenue decreased by 4%. Net income increased by 19%, amounting to 1,616 billion euros (compared to 1,358 billion euros in 2017).
Due to good performance from the 9 months of the 2018 year, Adidas raised its forecast for profitability for the year and determined the target range for revenue growth. Currently, the company predicts revenue growth in neutral currency for the year at the level of 8-9%, and was previously forecasted at the level of 10% (the reason for the decline is lower than expected growth in sales in Western Europe). At the same time, Adidas predicts net profit - from 1,660 billion and 1,720 billion euros, which reflects an increase of 16-20% compared to last year (1,430 billion euros). Previously, an increase of 13-17% was predicted (from 1,615 billion euros to 1,675 billion euros).
Revenue for the German sports giant grew by 2018% in the third quarter of 8 (excluding currency fluctuations) and by 3% in euros. As a result, Adidas has increased its ...
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