adidas: guidance raised after strong Q2

(CercleFinance.com) - adidas raised its full-year targets on Wednesday, following a better-than-expected performance in Q2, thanks to the success of its lifestyle range, less reliance on promotions and lower costs.


The German sports equipment maker's operating profit reached E346m over April-June, compared with E176m a year ago.

Gross margin at group level reached 50.8%, compared with 50.9% a year earlier, but the company says it benefited from a strong improvement in the margin of the adidas brand itself.

Quarterly sales rose by 9% to E5.82bn, including 11% growth at constant exchange rates.

For 2024, adidas now expects sales growth at constant exchange rates to be close to, albeit below, 10%, compared with a previously announced forecast of over 5%.

The company also expects full-year operating profit to be around E1bn, instead of E700m.

Following this announcement, the share price climbed over 4%, making it one of the strongest performers on the pan-European STOXX 600 index.


Copyright (c) 2024 CercleFinance.com. All rights reserved.