In its third quarter, Adidas Group lifted its sales in constant currencies by 13 percent with a double-digit growth in basically all regions but Russia and Eastern Europe. In euros, sales were up by 18 percent and reached €4,758 million.
Besides strong development of the Adidas brand, the development derived partly from the growth of Reebok by 3 percent and TaylorMade-Adidas Golf by 6 percent. The Adidas core brand improved its sales in constant currencies by 14 percent.
In Western Europe, the group saw sales soar by 18 percent. The improvement by 6 percent in North America was due to the evolution of the Adidas brand which was partly offset by Reebok’s performance in the region. China was up by 15 percent in constant currencies. In Russia and the Commonwealth of Independent States, turnover declined by 7 percent, partly because of the shutdown of own retail operations. Sales were up by 20 percent in Latin America and by 6 percent in Japan.
In the third quarter, the gross margin improved by 1.0 percentage points and reached 48.7 percent. The profit from continued operations increased by 20 percent to €337 million.
In the first nine months through September, total sales were up by 9 percent in constant currencies and by 17 percent in euros and reached nearly €12.75 billion. This evolution came from Adidas’ growth in the double-digits and from Reebok in the mid-single digits.
Profit for the first nine months jumped by 14 percent compared with the previous year’s period to €719 million. The loss from discontinued operations in the context of the sale of the Rockport footwear brand was €36 million.
For the current financial year ending Dec. 31, the management raised the outlook from sales growth in the mid single-digits to the high single-digits. It expects a strong increase in the double-digits notably in the regions Western Europe, China, the Middle East, Africa and Australia. For North America, Adidas expects an increase in the high single-digits and no longer in the mid single digits. The gross margin is expected to go up to 48.0-48.5 percent from 47.6 percent last year.