Adidas Profits Spiked Double Digits in Q3

David Beckham x Adidas Predator Accelerator
David Beckham x Adidas Predator Accelerator "Cage"
Adidas

Adidas on Thursday confirmed its top- and bottom-line full-year outlook coming off a strong third quarter fueled by double-digit growth in North America, greater China and e-commerce, where revenues grew 39 percent.

The German sporting goods firm posted net profits of 527 million euros ($613 million) in the three months ended Sept. 30, up 36 percent year-on-year.

Group sales increased 9 percent to 5.68 billion euros, driven by a 13 percent increase at the Adidas brand, which saw double-digit increases in the running and outdoor categories as well as at Adidas Originals and Adidas Neo.

Gross margin, a key indicator of profitability, increased by 2.4 percentage points to 50.4 percent, boosted by better pricing and product mix, which the group said more than offset higher input costs as well as unfavorable currency developments.

Adidas confirmed net income from continuing operations for the full year is expected to increase at a rate of between 26 percent and 28 percent to a level of between 1.36 billion and 1.39 billion euros.

Sales in currency-neutral terms are expected to grow between 17 and 19 percent.

The brand has just announced it will build a “world class” office in Los Angeles early next year. Adidas will take over a 31,000-square-foot office space inside the ROW DTLA, located downtown in that city. The other cities Adidas identified in a growth plan laid out in 2015 are New York, London, Paris, Shanghai and Tokyo.