Adidas has reported stellar third quarter performance, despite the huge college basketball bribery scandal that saw one of its senior executives, Jim Gatto, indicted.
Adidas’ Q3 2017 report indicates that the brand enjoyed a growth in net earnings of 35%, while sales improved by 12% on a currency-neutral basis. Regionally planned, adidas’ increase in profit was specifically driven by the growth in the Great China area and North America (28% and 23%, respectively) as a result from the company’s strategically focused geographic areas.
Moreover, sales in sports such as running and other outdoor activities increased by double digits. However, football and basketball saw categorical decreases due to major NCAA scandals that resulted in termination of sponsorship agreements.
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The Q3 report also illustrated a decrease in revenue in Russia and eight former Soviet Republics (CIS) by 17% due to challenging consumer sentiment and store closures. The brand’s subsidiary company Reebok also only saw a 1% growth, an alarming lack of boost in revenue — especially given adidas’ lofty financial goals.
Other major developments adidas reported include a growth in gross margin by 2.4pp to 50.4 percent and an operating margin increase by 2.7pp to 14.0 percent. Net income from continuing operations grew by 35 percent to €549 million, and a basic EPS from continuing operations increases by 33 percent to €2.70.
According to Forbes, adidas AG stock ADDYY saw a slight spike hours after the release of the Q3 report but the overall trend remains down over the five-day, one-month, and three-month period.
For a more detailed report, visit here.
Nike, Under Armour & Adidas all scored 100% on the 2018 Corporate Equality Index. Survey measures corporate polices related to LGBTQ workplace equality.
— Jess Golden (@JGolden5) November 9, 2017
Image via adidas
