Adidas has eyes on 2019 finish line after Q3 profit slip

FRANKFURT: German sportswear maker Adidas said yesterday it remains confident of hitting fullyear financial targets after a profit slip in the third quarter, buoyed by fast-rising sales. In JulySeptember, Adidas’ bottom line fell back 1.8 percent year-on-year, to 646 million euros ($715 million), slightly beating forecasts from analysts surveyed by Factset.

But revenues surged 9.1 percent to 6.4 billion euros. Double-digit growth in China and North America was Adidas’ biggest sales driver, while Europe inched up more tentatively.

Its flagship brand with the three stripes sold six percent more even in a year without mammoth sporting events, while struggling US subsidiary Reebok also lifted sales slightly.

Meanwhile growth in online sales slowed to 14 percent in the third quarter, compared with 76 percent a year before. Despite the growth, operating, or underlying profit at Adidas also fell back, shedding 0.3 percent to reach 897 million euros.

The operating result was weighed down by advertising costs as the company looks to rev up sales in the second half of the year. “We confirm our full-year outlook and remain confident about a significant top-line acceleration during the fourth quarter,” chief executive Kasper Rorsted said in a statement.

The Bavarian group expects to make net profits between 1.88 and 1.95 billion euros this year, up between 10 and 14 percent on 2018’s result.