Adidas raises 2016 guidance after first-quarter earnings jump

By | April 27, 2016

Adidas shoes are displayed in a Sports Direct store in London March 5, 2016.    REUTERS/Kevin Coombs

German sporting goods group Adidas (ADSGn.DE) hiked its guidance for 2016 sales and earnings a second time as it reported a 38 percent jump in quarterly underlying profit, citing strong brand momentum.

Adidas said on Wednesday it now expected its 2016 currency-adjusted sales to grow by about 15 percent, compared with a previous forecast for a rise of 10 to 12 percent.

It sees net profit from continuing operations rising by 15 to 18 percent this year, compared with previous guidance for a 10 to 12 percent growth.

Shares were indicated to rise 3.4 percent to the top of the German blue-chip index .GDAXI, which was seen unchanged in pre-market trade at brokerage Lang & Schwarz.

Adidas had raised its guidance in February after beating 2015 targets, having previously seen sales and earnings up by a high single-digit percentage.

First-quarter revenues rose 17 percent to 4.8 billion euros ($5.4 billion) and were up 22 percent when adjusted for currency swings, while net profit from continuing operations rose to 350 million euros from 255 million, excluding goodwill impairment losses.

Adidas is due to publish full first-quarter results and more details on the improved outlook on May 4.