The net profit of German Adidas AG (ADSGN) in the first quarter of 2017 increased by 30% to 455 million euro compared to 350 million euro a year earlier, according to a press release from the world's second-largest sports goods manufacturer.
The indicator showed steady growth due to high demand for its products in North America and China.
Operating profit of Adidas in the past quarter increased by 29% to 632 million euro, while revenue rose by 19% to 5.67 billion euro.
The indicators exceeded market expectations. Experts interviewed by Bloomberg agency, on average, forecasted the company's operating profit at 564.9 million euro with revenue of 5.38 billion euro.
Revenues from sales of Adidas and Reebok brands without currency fluctuations increased in all geographic segments, except for the region including Russia and the CIS, the company said.
For example, sales in Western Europe rose 10%, in North America by 31%, in China, Hong Kong and Taiwan by 30%, in Japan by 21%, in Latin America by 9%, and in MEAA East, Australia and Africa - by 15%.
In Russia/CIS, the company's sales declined by 10% in the last quarter "due to the complex mood of consumers, as well as additional closings of stores," the company notes. Sales of Adidas brand alone fell 15%, while Reebok rose 6%.
The gross profitability in the 1st quarter decreased by 0.2%, to 49.2%, due to unfavorable fluctuations in exchange rates.
Adidas confirmed the forecast for the current year, according to which the growth rate of its revenues without taking into account currency fluctuations this year will be from 11% to 13%. Net profit is expected to increase by 18-20% and will be between 1.2 billion and 1.225 billion euro.
Since the beginning of this year, the company's share price has grown 25% and the company's capitalization is close to 40 billion euro.