At the end of the third quarter, the net profit of the German company Adidas AG (DE: ADSGN) from continuing operations increased by 15%, to 387 million euro, compared with 337 million euro a year earlier.
According to Adidas report, the operating profit for the quarter increased by 11%, to 563 million euro, while revenues jumped by 14%, to EUR 5.4 billion.
The experts surveyed by Bloomberg, on average forecast operating profit at 564.9 million euro on revenue of 5.38 billion euro.
Revenue from sales of Adidas and Reebok brands, excluding currency fluctuations, increased in all geographical segments, with growth rates of double-digit everywhere except in the region that includes Russia and the CIS, says the company.
For example, in Western Europe, sales rose 15%, in North America - 20%, in China, Hong Kong and Taiwan - by 25%, in Latin America - by 16%, in MEAA (Middle East, Australia and Africa) - by 19%.
In Russia/CIS, the sales in the last quarter rose 7%.
The gross margin in the third quarter decreased by 0.9%, to 47.6% - due to unfavorable exchange rate fluctuations, the company said.
Adidas confirmed the forecast for the current year, according to which the rate of sales growth excluding currency fluctuations this year will be expressed in a figure in the range of 20 to 30 percent. Net income is expected to increase by 35-39% and range from 975 million euro to 1 billion euro.
The company raised annual forecasts 4 times since the beginning of 2016.
Last month, Kasper Rorsted became the CEO of Adidas, who succeeded Herbert Heiner, who headed the company since 2001.
Adidas shares in the course of Thursday trading session fell 1.6%. Since the beginning of this year, the company’s share price increased by 63%.