German sports apparel manufacturer Adidas has noted a 16 per cent increase in its sales during the first quarter of 2017.
During the period under review, the retailer’s operating profit increased by 29 per cent. However, it noted 0.2 percentage points decrease in gross margin to 49.2 per cent as against 49.4 per cent for the same period in the previous year.
Operating margin is forecast to improve between 0.6 and 0.8 percentage points to a level between 8.3 per cent and 8.5 per cent, reflecting the projected gross margin improvement as well as an expected decline in other operating expenses as a percentage of sales. As a result, operating profit is expected to grow between 18 per cent and 20 per cent.
In addition, sales in Latin America grew at a high single digit rate as the positive effect from an improved pricing and product mix as well as lower input costs was more than offset by unfavourable currency developments.
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Adidas has expressed hope to note increase in sales at a rate between 11 per cent and 13 per cent driven by double-digit growth in Western Europe, North America and Greater China, Japan and MEAA where revenues increased at double-digit rates each.
