Sales and Profits Soar in Strategic Markets
- Adidas reports double-digit growth across all key regions
- Sales in Western Europe rise 12.6% to £5.23bn
- Overall net sales increased 14.8% to £18.8bn
- Gross profits rose 17.6% to £8.96bn
- Adidas attributes growth to strategic areas like North America (up 27.4%) and China (up 29.5%)
- Online sales increased by 57%
- Adidas brand revenue up 18.1% to £16.9bn, sister brand contributed £1.6bn
- Company upgrades 2020 profitability target from 20%-22% to 22%-24%
- Operating margin target raised to 11.5% (from 11%) by 2020
- CEO Kasper Rorsted: ‘2017 was a strong year, 2018 key milestone for long-term targets’.
Sports retail giant Adidas has reported double-digit growth across all of its key regions, with sales in Western Europe rising 12.6% to £5.23bn. Overall net sales increased by 14.8% to £18.8bn while gross profits rose 17.6% to £8.96bn. The company attributes this growth to strong performance in strategic areas such as North America (up 27.4%) and China (up 29.5%). Online sales also surged by 57%. Adidas’s main brand revenue reached £16.9bn, while its sister brand contributed £1.6bn. The company has upgraded its 2020 profitability target from 20%-22% to 22%-24%, and raised the operating margin goal to 11.5%. CEO Kasper Rorsted calls 2017 a strong year, with 2018 as a crucial milestone for achieving long-term targets.
Factuality Level: 10
Factuality Justification: The article provides accurate information about Adidas’ financial performance, including growth rates for various regions, sales figures, and updated profitability targets. It also includes a quote from the CEO that supports the claims made in the article.
Noise Level: 3
Noise Justification: The article provides relevant information about Adidas’ financial performance and growth across various regions, including specific numbers and projections for future growth. It also includes a quote from the CEO that adds context to the company’s outlook. However, it lacks in-depth analysis or exploration of long-term trends or possibilities, and does not delve into systems that can withstand or benefit from shocks and unexpected events.
Financial Relevance: Yes
Financial Markets Impacted: Adidas stock price and other sports retail companies
Financial Rating Justification: The article discusses Adidas’ financial performance, including sales growth in various regions, increased profits, and an upgraded profitability target. This information can impact the company’s stock price and the overall sports retail industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
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