Menu
Finance

Adidas Raises Full-Year Forecast Amid Chelsea Payment Boost

Adidas "increased its full-year forecast for a fourth time this year after receiving boosts from the Euro 2016 tournament and a payment to bring an early close to a sponsorship deal" with Chelsea, according to Aaron Ricadela of BLOOMBERG. Adidas said that currency-neutral sales growth this year will increase in the "high teens." The German shoemaker "previously forecast growth of about 15 percent." Profit from continuing operations "will increase as much as 39 percent," approaching €1B ($1.11B), compared with the 25% increase the sports gear maker had seen earlier. Shares of adidas rose as much as 5.3% "to a record in Frankfurt." The stock has gained 63% this year, "making it the best performer in Germany’s benchmark DAX index." Cedric Rossi, an analyst at Bryan Garnier & Co, said that adidas' 21% organic growth in the second quarter "is more than double" what rival Nike posted in its most recent period.  Rossi said, "They are gaining market share at the expense of Nike. Everybody is 100 percent convinced the adidas turnaround is not only successful but also sustainable over the next quarters" (BLOOMBERG, 7/28).

EURO 2016 BOOST
: In London, James Shotter wrote adidas "did not say how it had performed in different regions," but Andreas Riemann, an analyst at Commerzbank, said that "he believed the European football championships, held in France in June, had probably been a key driver," as well as the U.S. and China. He said, "Overall, the numbers show that the adidas brand is doing well across major regions." The fact that profits will rise faster than sales is good news for adidas, "which has been under pressure from investors to improve its margins, which lag far behind those of Nike." Last year, adidas’s operating margin was just 6.5%, while Nike’s was 13.9%. Adidas "is now forecasting an operating margin" of 7.5% this year (FINANCIAL TIMES, 7/28).

SBJ Morning Buzzcast: March 18, 2024

Sports Business Awards nominees unveiled; NWSL's historic opening weekend and takeaways from CFP deal

ESPN’s Jay Bilas, BTN’s Meghan McKeown, and a deep dive into AppleTV+’s The Dynasty

On this week’s Sports Media Podcast from the New York Post and Sports Business Journal, ESPN’s Jay Bilas talks all things NCAA. Big Ten Network’s Meghan McKeown shares her insight into the Caitlin Clark craze. The Boston Globe’s Chad Finn chats all things Bean Town. And SBJ’s Xavier Hunter drops in to share his findings on how the NWSL is making a social media push.

Learn more about your ad choices. Visit megaphone.fm/adchoices

SBJ I Factor: Nana-Yaw Asamoah

SBJ I Factor features an interview with AMB Sports and Entertainment Chief Commercial Office Nana-Yaw Asamoah. Asamoah, who moved over to AMBSE last year after 14 years at the NFL, talks with SBJ’s Ben Fischer about how his role model parents and older sisters pushed him to shrive, how the power of lifelong learning fuels successful people, and why AMBSE was an opportunity he could not pass up. Asamoah is 2021 SBJ Forty Under 40 honoree. SBJ I Factor is a monthly podcast offering interviews with sports executives who have been recipients of one of the magazine’s awards.

Shareable URL copied to clipboard!

https://www.sportsbusinessjournal.com/Global/Issues/2016/07/29/Finance/adidas.aspx

Sorry, something went wrong with the copy but here is the link for you.

https://www.sportsbusinessjournal.com/Global/Issues/2016/07/29/Finance/adidas.aspx

CLOSE