Adidas plays to its strengths with improving sales in Europe
German sportswear brand shrugs off US supply chain problems in third quarter to see global sales jump
German sportswear brand Adidas has posted stronger-than-expected sales figures for the third quarter of 2019, driven by a return to growth in its key European market.
The company announced that currency-neutral sales rose 6 per cent in the quarter, with revenues of €6.4 billion (£5.5 billion, $7.1 billion) and an operating profit of €897 million. Sales and profit both beat analysts’ expectations.
Adidas is now forecasting annual sales to rise by around 6.5 per cent, in line with guidance.
European sales grew by an encouraging 3.2 per cent, with CEO Kasper Rorsted confident of continued growth in the company’s home market for the fourth quarter and beyond, partly driven by next summer’s European football championships.
“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.” Rorsted said.
North American sales also picked up after months of supply chain issues in the region. Sales there jumped 16 per cent, and Rorsted was quick to reassure investors that supply chain problems would have minimal effect in the fourth quarter.
He also said that US tariffs on China would have little impact on business, though the company conceded that there might be slight price hikes in the US if tariffs continue.
Russia and Emerging Markets also posted double-digit sales growth, and the company said sales in the Greater China region continued to be buoyant.