adidas: share down after forecasts deemed cautious
(CercleFinance.com) - adidas shares fell on Thursday, after announcing forecasts for 2025 that were deemed cautious, even following better-than-expected results for 2024.
The sports equipment manufacturer said it is targeting sales growth of 5% to 10% at constant exchange rates this year, below analysts' forecasts of 11%.
The German group also expects to generate operating profit (Ebit) of between E1.7bn and E1.8bn for the year, again below the consensus forecast of E2.2bn.
These announcements pushed the share price down on the Frankfurt stock exchange, where it fell by nearly 2% in late morning trading, one of the biggest falls on the German DAX stock index, which was up 2.2% at the same time.
Despite this "conservative" outlook, many analysts recommend that investors take advantage of this bout of weakness to strengthen their positions in the share, pointing out that the group is known for its cautious targets.
We expect adidas to report sales and Ebit well above the forecasts that the group has communicated, RBC commented.
"The company has already shown itself to be cautious in the past, with the "Gulden method" consisting of promising little but doing better than expected", Stifel reminded us.
Björn Gulden, Stifel's CEO, has confirmed that the group is starting the 2025 financial year "in good shape" and is optimistic about the future, anticipating gains in market share in all its geographical areas.
Copyright (c) 2025 CercleFinance.com. All rights reserved.
The sports equipment manufacturer said it is targeting sales growth of 5% to 10% at constant exchange rates this year, below analysts' forecasts of 11%.
The German group also expects to generate operating profit (Ebit) of between E1.7bn and E1.8bn for the year, again below the consensus forecast of E2.2bn.
These announcements pushed the share price down on the Frankfurt stock exchange, where it fell by nearly 2% in late morning trading, one of the biggest falls on the German DAX stock index, which was up 2.2% at the same time.
Despite this "conservative" outlook, many analysts recommend that investors take advantage of this bout of weakness to strengthen their positions in the share, pointing out that the group is known for its cautious targets.
We expect adidas to report sales and Ebit well above the forecasts that the group has communicated, RBC commented.
"The company has already shown itself to be cautious in the past, with the "Gulden method" consisting of promising little but doing better than expected", Stifel reminded us.
Björn Gulden, Stifel's CEO, has confirmed that the group is starting the 2025 financial year "in good shape" and is optimistic about the future, anticipating gains in market share in all its geographical areas.
Copyright (c) 2025 CercleFinance.com. All rights reserved.