Concretely, Adidas now wants to increase profits from sustainable operations by 16 to 20 percent. In the best case, this corresponds to a value of 1.72 billion euros. Previously, the group expected an increase of 13 to 17 percent. Current operating results are expected to rise 12 to 16 (previously: 9 to 13) percent and operating margins to 10.8 percent. The group had previously estimated a value of between 10.3% and 10.5%.
The Frank family has very controlled costs. Although recent marketing expenditures have increased and also weighed on currency securities, the Dax Group can more than offset this by launching new products sold at higher prices, reducing discounts and increasing distribution channels such as online trading.
Because of weaker developments in Western Europe, full-year sales are now expected to grow between 8 and 9 percent in constant currencies. So far, around 10 percent is estimated. In the home area, Adidas posted a slight decline in the second quarter. Adidas has cleared the distribution channel and is not always happy with the launch of new products. Analysts also speculate how far summer can make consumers shop.
In the third quarter, Adidas posted a decline in currency neutral sales by 1.3 percent in Western Europe. But everything is better in North America and Asia. Both regions grow again in double digits. Especially in China, Adidas scored points with consumers. In Russia, too, the effects of the World Cup are still influential.
Overall, Adidas increased its quarterly revenue by 3.5 percent to 5.87 billion euros. The decline of Argentine pesos, for example, has a negative impact. Excluding the impact of currency fluctuations, Adidas rose 8 percent. The Reebok subsidiary, which has developed into a fitness brand for years, also reported declining sales.
Operating results increased in the third quarter by 13.2 percent to 901 million euros. Profits from continuing operations increased 19.5 percent to 656 million euros.