Adidas ups full-year outlook after strong Q3 earnings

Adidas AG raised its full-year guidance following "better than expected" earnings for the third quarter, reported on Tuesday.

Adidas ups full-year outlook after strong Q3 earnings

Sales climbed 7.3%, or 10% at constant exchange rates, reaching €6.44 billion for the three months ending September 30, up from €6.00 billion a year earlier. The Herzogenaurach, Germany-based athletic apparel and footwear retailer attributed this growth to "strong momentum" in its core adidas business, where currency-neutral revenue surged by 11%. Attributable net income soared 71% to €443 million, up from €259 million. Basic and diluted earnings per share, including discontinued operations, rose 71% to €2.48, compared to €1.45 in the previous year. Operating profit for the quarter increased by 46% to €598 million, up from €409 million.

Expense details

On the expense side, the cost of sales rose by 3.1% to €3.14 billion, while operating and overhead expenses increased by 9.7% to €2.11 billion. Adidas noted that both its Lifestyle and Performance divisions achieved double-digit growth for the quarter, again measured at constant currency.