Sportswear Giant Adidas Sees Strong Growth Despite Obstacles
- Adidas reported a profit and sales boost during its third quarter
- Brand Adidas grew 12% currency-neutral, leading to record net sales of £5.81bn (€6.6bn) over Q3
- Operating profit increased by 23% to £648m (€736m)
- Gross profit rose 4% to £3,023m (€3,435m)
- Operating margin improved to 1.8 percentage points to 11.1%
- Net income reached £427m (€485m)
- Adidas CEO Bjørn Gulden praised the teams’ achievements
- Adidas forecasts operating profit for FY25 to increase by around £1.76bn (€2bn)
- Company revenues expected to grow by 9%
- Top-line guidance narrowed and full-year EBIT outlook raised to €2 billion
- Adidas brand experienced 14% growth year-to-date with an EBIT margin above 10%
Sportswear giant Adidas has reported a profit and sales boost during its third quarter, despite facing a cyber-attack earlier this year. The brand grew 12% currency-neutral, resulting in record net sales of £5.81bn (€6.6bn) over Q3. Operating profit increased by 23% to £648m (€736m), while gross profit rose 4% to £3,023m (€3,435m). The operating margin improved to 1.8 percentage points to 11.1%, and the retailer’s net income reached £427m (€485m) due to hyperinflation-related effects. Adidas CEO Bjørn Gulden expressed pride in his teams’ achievements, stating that the 12% growth for the adidas brand led to total revenue of €6.63 billion – the highest in a single quarter. He also highlighted strong growth across categories and regions. Looking ahead, Adidas forecasts its operating profit for FY25 to increase by around £1.76bn (€2bn), previously estimated at between €1.7 to €1.8bn. The company also expects revenues to grow by 9%, up from a previous prediction of high-single-digit rise. Gulden noted the volatile environment with tariff increases in the US and consumer uncertainty but emphasized that Adidas’ brand resonates well with consumers, leading to narrowed top-line guidance and raised full-year EBIT outlook to around €2 billion. With a 14% growth year-to-date and an EBIT margin above 10%, Adidas celebrates its success in Q3.
Factuality Level: 9
Factuality Justification: The article provides accurate information about Adidas’ financial performance and the CEO’s statements without any sensationalism or personal opinions. It reports on the company’s growth, profit increase, and forecasts for future performance, making it a factual news piece.
Noise Level: 3
Noise Justification: The article provides relevant information about Adidas’ financial performance and growth during the third quarter, including specific numbers and quotes from the CEO. However, it does not delve into any in-depth analysis or explore potential consequences of decisions on those who bear the risks. It also lacks actionable insights or new knowledge for readers.
Financial Relevance: Yes
Financial Markets Impacted: Adidas’ financial performance impacts the company’s stock price and may affect investors in the sportswear industry.
Financial Rating Justification: The article discusses Adidas’ Q3 profit and sales growth, which can impact investor decisions and the overall sportswear market.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: The article discusses Adidas’ financial success and growth despite a cyber-attack earlier this year, but there is no extreme event with significant impact in the last 48 hours.
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