Shares Drop Despite Strong Performance

  • Adidas shares dip by 2.3% despite Q2 operating profit growth of 13% to €1.518bn
  • Revenues increased 4% in first half of 2019 on a currency-neutral basis
  • Flat revenues in Europe, 6% increase in North America
  • Sales in strategic growth areas Greater China and e-commerce up at double-digit rate
  • CEO Kasper Rorsted remains confident about sequential revenue acceleration in second half of the year

Sportswear retailer Adidas experienced a 2.3% dip in shares despite reporting a 13% increase in operating profit to €1.518bn (£1.398bn) during Q2. In the first half of 2019, revenues grew by 4% on a currency-neutral basis, as expected due to supply chain shortages from increased demand for mid-priced apparel. Adidas also reported flat revenues in Europe and a 6% increase in North America, with a 5% rise at the adidas brand and 10% growth for Reebok. However, sport performance revenues declined at a low-single-digit rate due to the non-recurrence of FIFA World Cup sales. CEO Kasper Rorsted remains confident about revenue acceleration in the second half of the year.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Adidas’ financial performance, including specific numbers and growth rates, and quotes from the CEO. It does not include any irrelevant or sensational details, nor does it present personal opinions as facts.
Noise Level: 3
Noise Justification: The article provides relevant information on Adidas’ Q2 financial results and performance, with a focus on operating profit growth, revenue changes in different regions, and the CEO’s statement about future confidence. It stays on topic and supports its claims with specific numbers.
Financial Relevance: Yes
Financial Markets Impacted: Adidas shares dipped by 2.3% in early trading, impacting the company’s stock value
Financial Rating Justification: The article discusses Adidas’ financial performance and its impact on the company’s stock market value.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text

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