Sports brand adidas expects 2019 to be a record year and “another important milestone towards achieving its 2020 targets” after posting its third quarter results.
In the quarter, currency-neutral revenues grew by six per cent on the same period last year. In euro terms, the company’s revenues grew nine per cent in the third quarter to €6.41bn ($7.1bn).
For the full-year, the company expects sales to increase at a rate of between five per cent and eight per cent on a currency-neutral basis. 2019 is also expected to drive a double-digit-rate improvement of the company’s bottom line.
Kasper Rørsted, chief executive at adidas, said: “I am very pleased with our third quarter results and the continued progress made in our strategic growth areas, delivering double-digit sales increases at adidas North America as well as in Greater China and e-commerce.”
Sales in China were up 11 per cent, North America by 10 per cent and e-commerce by 14 per cent.
Rørsted also expects a “significant acceleration” in fourth quarter sales, driven by multiple factors, including the first positive impact from product launches related to next year’s Euro 2020 football championship. The adidas Uniforia – the Official Match Ball for Euro 2020 – launched yesterday (pictured above).
On a brand-by-brand basis, third quarter revenues at the adidas brand increased by six per cent on the same time last year and the Reebok brand by two per cent.
The improvement in the adidas brand results reflected high-single-digit growth in the ‘Sport Performance’ division, which includes sales of replica shirts, driven by increases in the training, running and outdoor categories.
In the ‘Sport Inspired’ division, which stands for fashion inspired by sport, the adidas brand grew at a mid-single-digit rate.