Sportswear giant Adidas Group has announced that its revenues surged by 17 per cent on a currency-neutral basis, driven by strong momentum at both Adidas and Reebok in the third quarter of the current fiscal.
The Group generated operating profit of Euro 563 million, up by 11 per cent as against Euro 505 million in the corresponding period last year. Its net income from continuing operations jumped 15 per cent to Euro 387 million as against Euro 337 million in the comparable period last year. In the period under review, net revenues for the Adidas brand were up by 20 per cent on a currency-neutral basis, fuelled by double-digit sales increases in Sport Performance, at Adidas Originals as well as at Adidas neo. Reebok’s revenues zoomed 7 per cent with sales growth across all regions, supported by double-digit sales increases in the running category as well as in Classics.
As per the company release, revenues in Western Europe increased by 15 per cent on a currency-neutral basis, driven by the UK, Germany, France, Italy, Spain and Poland, where revenues grew at double-digit rates each. Growth trends in North America and Greater China remained strong, as reflected in currency-neutral sales increases of 20 per cent and 25 per cent respectively. Revenues in Russia/CIS continued to grow at robust rates, up 7 per cent on a currency-neutral basis.
Also Read – New Adidas CEO plans to reshape Reebok
Whereas, in Latin America, revenues grew 16 per cent on a currency-neutral basis, reflecting double-digit sales increases in Argentina, Peru and Colombia as well as high-single-digit growth in Mexico and Chile. In Japan, sales were up 21 per cent on a currency-neutral basis. Currency-neutral sales in MEAA grew 19 per cent, driven by double-digit growth in South Korea, Australia, the United Arab Emirates, South Africa, India and Thailand.
The Group posted a jump of 20 per cent on a currency-neutral basis in revenues for the nine months of FY ’16, driven by strong double-digit growth at Adidas and high-single-digit sales increases at Reebok. In the mentioned period, the company’s net income from continuing operations, excluding goodwill impairment losses in the prior year, totalled Euro 1.028 billion, witnessing an increase of 39 per cent.
Kasper Rorsted, CEO, Adidas Group stated, “We will ensure that the Adidas Group remains a growth company that delivers sustainable top- and bottom-line improvements in the years to come as outlined in our long-term strategic business plan ‘Creating the New’.”
