Adidas raises full-year forecast after strong Q1

FRANKFURT, Germany – Adidas, the German maker of sportswear and equipment, said Wednesday, April 27, that it is raising its full-year forecasts after notching up better-than-expected growth in the first 3 months.

“In light of the strong brand momentum, which is reflected in the better than expected first quarter performance, the group has increased its 2016 financial outlook,” Adidas said in a statement.

“Management now projects sales to grow at a rate of around 15% in 2016,” when adjusted for exchange rate fluctuations, whereas Adidas had previously been penciling in growth of between 10% and 12%, the statement said.

“As a result, net income from continuing operations is now forecast to grow at a faster rate than the top line and increase between 15% and 18%,” compared with an earlier forecast of 10-12%, it continued.

In the first 3 months of the current year, Adidas sales were up 22% in currency-adjusted terms at 4.8 billion euros ($5.4 billion).

Underlying or operating profit jumped by 35% to 490 million euros and net profit was up 38% at 350 million euros.

Adidas said it would publish full details of its first-quarter earnings on May 4. – Rappler.com