Adidas: profit-taking after a solid Q3

(CercleFinance.com) - Last night, adidas reported better-than-expected Q3 results and raised its annual targets, a publication which nonetheless met a cool reception on the Frankfurt stock exchange on Wednesday.


The sports equipment manufacturer's sales rose by 7% to almost E6.44bn in the three months to end-September, including 10% growth at constant exchange rates.

Excluding Yeezy, the brand of its former ambassador Kanye West, growth was even 14% y-o-y.

Operating income rose to E598m, compared with E409m in Q3 2023.

In the wake of this better-than-expected performance and its brand's current momentum, the group now expects sales to grow by around 10% at constant exchange rates this year, compared with a previous forecast of less than 10%.

Operating income is now expected to reach E1.2bn, compared with around E1bn previously.

Following these announcements, the adidas share lost more than 8% on Wednesday morning. Investors anticipated this solid publication given the 27% rise in the share price YTD.

Other analysts point out that the new forecasts communicated by adidas also point to a slowdown in growth in the 4th quarter, to 9% compared with 14% in Q3.


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